1. Audit Evidence Process

2. Audit Evidence Process
Evidence gathering techniques
Compliance vs substantive testing
Sampling
Computer Assisted Audit Techniques (CAATS)
Analysis
Review

3. Evidence Independence of the provider of the evidence
Qualifications of the individual providing the information/evidence
Objective of the evidence
Timing of the evidence

4. Evidence Gathering Techniques
Review information system organization structures
Reviewing IS Policies and procedures
Reviewing information system standards

5. Evidence Gathering Techniques
Reviewing information system documentations
System development initiating document (eg. Feasibility study)
Functional requirements and design specifications
Test plans and reports
Program and operations documents
Program change logs and histories
User manuals
Operations manuals
Security related documents
Quality assurance reports

6. Evidence Gathering Techniques
Interviewing appropriate personnel
Observing processes and employee performance

7. Sampling Audit samples Approaches
Statistical sampling
Non statistical sampling
IS auditor should design and select an audit sample
Perform audit procedures
Evaluate sample results
Sufficient
Reliable
Relevant
Useful audit evidence

8. Sampling Method Attribute sampling Variable sampling
Stop or go sampling
Discovery sampling
Variable sampling
Stratified mean per unit
Unstratified mean per unit
Difference estimation

9. Sampling Key steps Determining the objectives of the test
Defining the population to be sampled
Determining the sampling method, such as attribute vs variable sampling
Calculation the sample size
Selecting the sample
Evaluating the sample from an audit perspective

10. Compliance vs Substantive Testing
If controls are being applied in a manner that complies with management policies and procedures
To provide IS auditor with reasonable assurance that the particular on which the IS auditor plans to rely is operating as the IS auditor perceived in the preliminary evaluation
Can be used to test the existence and effectiveness of a defined process, which may include a trail of documentary and/or automated evidence

11. Compliance vs Substantive Testing
Substantiates the integrity of actual processing
Provides evidence of the validity and integrity of the balances in the financial statements and the transactions that support these balances
To test for monetary errors directly affecting financial statement balances

12. Computer Assisted Audit Techniques (CAATS)
Types of tools and techniques
Generalized audit software (GAS)
Utility software
Test data
Expert System

13. Documentation Minimum Record
The planning and preparation of the audit scope and objectives
The information systems environment
The audit program
The audit steps performed and audit evidence gathered
The audit findings, conclusions and recommendations
Any report issued as a result of audit work
Supervisory review comments if any

14. Documentation Audit Documentations (G8) Background Planning
Linkage to Standards
Need for Guideline
Planning
Documentation Contents
Documentation Custody, Retention, and Retrieval