02 Jul Week 4 Discussion Topics
Reminder – I do not allow direct quotes in student’s work in this class. You need to paraphrase and cite your outside sources. “Outside sources” do not include the text and so you don’t need to cite it.
1) The text lists three qualities of audit evidence that contribute to that evidence’s persuasiveness. Describe each of the three and discuss how it contributes to the persuasiveness of the evidence. Also, discuss whether all three must be satisfied for auditors to be assured that they have gather sufficiently persuasive evidence to be reasonably assured of their audit conclusions.
Hint – This is a relatively descriptive question that can be answered directly from the text. Just remember to put things in your own words. Keep in mind that appropriateness consists of two issues: relevance and reliability. I want you to address them separately.
2) Audit documentation is the sole property of the auditor.
Hint – Chapter 4 only makes a limited and incomplete statement about working paper ownership and the conditions under which the auditor may be forced to release working papers to parties other than the client. You will need to review the discussion of Confidentiality Client Information rule in Chapter 2 to accurately answer this question. Parts a) and b) are descriptive and can be answer from the text. Just remember to post in your own words. However, c) is an opinion issue that asks you to consider the competing needs to protect the client and to protect the public by complying with courts and regulators as well as the need for the auditor to minimize litigation risk and protect their working papers.
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