• In the substantive testing stage, audit evidence is the information that the auditor is to make sure the appropriation of financial statement assertions. For examples, existence, rights and obligations, occurrence, completeness, valuation, measurement, presentation and disclosure of a particular transaction or account balance.
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• Transactions:
o Occurrence — the transactions actually took place
o Completeness — all transactions that should have been recorded have been recorded
o Accuracy — the transactions were recorded at the appropriate amounts
o Cutoff — the transactions have been recorded in the correct accounting period
o Classification — the transactions have been recorded in the proper accounts
• Accounts:
o Existence — assets, liabilities and equity balances exist
o Rights and Obligations — the entity holds or controls the rights to its assets and owes obligations to its liabilities
o Completeness — all assets, liabilities and equity balances that should have been recorded have been recorded
o Valuation and Allocation — assets, liabilities and equity balances are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded.
• Presentation and disclosure:
o Occurrence — the transactions have occurred
o Rights and Obligations — the transactions pertained to the entity
o Completeness — all disclosures that should have been included in the financial statements have been included
o Classification and Understandability — financial statements is appropriately presented and described, and information in disclosures in clearly expressed.
o Accuracy and Valuation — financial and other informa ...