Review of Audit Evidence Calculations by the auditor Analytical procedures Documents(authoritative) Subsequent events Client statements Records(subsidialy) Internal control Physical evidence Third party satements

• Cash

  The bank confirmations provide the best primary evidence of the year-end bank balance.

• A/R and Sales

  Valuation and allocation deal with whether assets,liability,revenue,and expense components have been included in the financial statements at appropriate amounts.

• A/R Confirmations

  Negative confirmations are used when the auditor can tolerate a high level of detection risk.
  The positive confirmation is preferable when individual account balance are relatively large or when there is reason to believe that there may a subatantial number of accounts in dispute or with errors or fraud.
  Noresponse to positive requests for accounts receivable confirmations generally requires the use of follow-up requests, such as additional mailings or telephone calls.It is appropriate that the auditor ask the client to contact the customers.

• Inventory
• Fixed Assets
• Investments
• Purchases and Other Liabilities
• Patroll
• Long-Term Liabilities
• Stockholders' Equity

  One of the primary objectives in testing relatedto Stockholder's Equity and Capital accounts is to verify that capital transactions are appropriately authorized and approved.

• Accounting Estmates