Question

Chapter 7 Vignette Question If you were the auditor, what you would do to avoid this mistake regarding audit evidence.

Answer 1

As an auditor, it is my responsibility to ensure that audit evidence obtained is reliable and free from any discrepancies. In this case the auditor relied on the bank statements supplied by Mr. Wasendorf as a basis for valid audit evidence when they should have relied on audit evidence obtained directly from an independent source like the bank itself to ensure correctness and accuracy.

To avoid such a mistake, I would request audit evidence regarding material matters from independent sources and compare them with audit evidence obtained internally from the client and inspect them for any discrepancies. I would not rely 100% on audit evidence which is supplied solely by the client without referring to evidence available from other sources in order to confirm that I am relying on sufficient and appropriate audit evidence.