Evidence

Question 1

Responsibility of Auditor for Fraud

Answer 1

Obtaining reasonable assurance that the financial statements
are free from material mistatemtn caused by error or fraid

Obtain suffircient evidence

While obtaining maintain professional skepticism

Ensure whole engagemnt team is
aware of the risks and responsibilities for fraud and error

Question 2

Analytical procedures

Explain what they are and where they are used

Answer 2

Planning: Risk Assessment to help auditor obtain understnding of entity and assess maetrial mistatemtn.

During: Obtain sufficient evidence. Tests of detail or substantive analytical procedures

Final Review stage: Assist in forming overall conclusion

Question 3

Suitability of analytical procedures

Answer 3

Nature of the balance or class of transactions.
 Analytical procedures are more suitable to large volume transactions that are predictable over time such as payroll, sales, and expenses.

Reliability of the information being analysed.
If the information being analysed is unreliable, the results of the analytical procedures will be unreliable. Reliability of the information will be affected by source, nature and effectiveness of internal controls.

Relevance to the assertion being tested.
Analytical procedures would usually not be used to test the existence assertion of a tangible asset such as inventory or property, plant and equipment as physical inspection of the asset would provide more reliable evidence.