Auditing Evidence


DEFINITION of 'Auditing Evidence'

The information collected for review of a company's financial transactions, internal control practices, and other factors necessary for the certification of financial statements by a certified public accountant. The amount and type of auditing evidence considered varies considerably based on the type of firm being audited as well as the required scope of the audit.

BREAKING DOWN 'Auditing Evidence'

The goal of any audit is to determine whether a company's financial statements comply with the generally accepted accounting principles applicable to the entity's jurisdiction. Publicly traded companies are generally required to present fully audited financial statements to shareholders periodically.

  1. Positive Confirmation

    An auditing inquiry that requires the customer to respond to ...
  2. Negative Confirmation

    A request by an auditor sent to a sample of a company's customers ...
  3. Audit Risk

    The risk that an auditor will not discover errors or intentional ...
  4. Auditor's Report

    Recorded in the annual report, the auditor's report tests to ...
  5. Audit

    1. An unbiased examination and evaluation of the financial statements ...
  6. Independent Auditor

    A certified public accountant who examines the financial records ...
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  1. How do I read and analyze an income statement?

    The income statement, also known as the profit and loss (P&L) statement, is the financial statement that depicts the ... Read Full Answer >>
  2. Do dividends affect working capital?

    Regardless of whether cash dividends are paid or accrued, a company's working capital is reduced. When cash dividends are ... Read Full Answer >>
  3. Do prepayments provide working capital?

    Prepayments, or prepaid expenses, are typically included in the current assets on a company's balance sheet, as they represent ... Read Full Answer >>
  4. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
  5. What is a profit and loss (P&L) statement and why do companies publish them?

    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>
  6. How do dividends affect the balance sheet?

    Dividends paid in cash affect a company's balance sheet by decreasing the company's cash account on the asset side and decreasing ... Read Full Answer >>

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