Framework & Introduction to Audit Evidence


The auditor has to gain adequate audit evidence to offer reasonable assurance that the financial statements are free from material misstatements. Thus ensuring that procedures are performed to obtain audit evidence about amounts and disclosures in the financial statements is important.


The auditor according to the ISA 300 Planning an audit of financial statements has to plan the audit work to ensure that the audit is performed in an efficient and timely manner. The planning process involves developing a general strategy and a descriptive approach for the nature, timing and extent of the audit.

Whilst planning the organisation will however have to consider the following:

  • Size of the organisation
  • The level of difficulty of the audit
  • The nature of the organisation
  • And the reporting requirements

In addition, the objectives of planning can include:

  • Ensuring that focus is on important areas of the audit
  • Ensuring that any issues are identified
  • Ensuring that the work is done quick and efficiently
  • Consistently reviewing audit work

Audit Documentation

The ISA 230 states that the auditor has to provide documents that are relevant in providing audit evidence that support the auditors opinion of the state of the financial statement of an organisation.

There are different types of documentation including:

  • Permanent file – Information that is of continuing importance (Eg Legal documents, accounting system notes, Details of the history of the organisation.
  • Current file – Information only relevant to the current year’s audit.

Note that typically audit evidence is persuasive rather than conclusive.