PCAOB AS 1105: Audit Evidence

Based on the relevant professional literature and PCAOB Auditing Standards:

• Gathering and recording audit evidence is a complex process,

• Selecting audit evidence requires substantial professional judgment,

• Audit evidence has to properly support the determination of the facts.

Attendees will:

• Improve their efficiency and effectiveness

• Understand what is sufficient audit evidence

• Know how to respond to risk of material misstatement

• Apply effective substantive audit procedures

• See the need for supervision

• Understand the PCAOB documentation requirements

Introductions and Administrative Items
Section 1 - Definitions and Concepts

• Audit Evidence
• Sufficiency
• Appropriateness
• Audit Assertions
• Procedures for Obtaining
• Characteristics of Audit Evidence

Section 2 - PCAOB Audit Evidence Standard

• Introduction
• Objective
• Sufficient Appropriate Audit Evidence
• Financial Statement Assertions
• Audit Procedures
• Testing to Obtain Audit Evidence
• Inconsistency

Section 3 - Going Forward

This CPE event focusing on PCAOB AS 1105: Audit Evidence provides an invaluable opportunity for professionals to deepen their understanding of the critical components of audit evidence within the context of the Public Company Accounting Oversight Board (PCAOB) standards. This event is tailored to equip practitioners with the knowledge necessary to navigate the intricacies of gathering, assessing, and documenting audit evidence in compliance with regulatory requirements.

Key areas addressed in this event may include:

• Standard Overview and Interpretation: In-depth exploration of PCAOB AS 1105, offering insights into the standard's interpretation, applicability, and implications for audit evidence gathering processes.

• Types of Audit Evidence: Examination of the various types of audit evidence, including documentary evidence, physical evidence, and testimonial evidence, highlighting best practices for their collection and evaluation.

• Assessment Techniques and Documentation Practices: Guidance on effective assessment techniques for evaluating the sufficiency and appropriateness of audit evidence, as well as documentation practices essential for compliance with PCAOB standards.

• Professional Judgment and Skepticism: Discussions on exercising professional judgment and skepticism in the context of audit evidence gathering, emphasizing the critical role of objectivity and thoroughness in the auditing process.

By addressing these fundamental aspects, the CPE event endeavors to empower professionals with the knowledge and tools necessary to uphold the integrity and quality of audit evidence, ultimately contributing to the assurance of financial reporting accuracy and regulatory compliance.

To enrich your journey and further your understanding, CCS has curated a list of authoritative sources that stand as beacons of knowledge in the realm of audit evidence. These resources are not only foundational in grasping the nuances of audit evidence but also instrumental in applying these principles in real-world scenarios to ensure the reliability and integrity of financial reporting.

• Public Company Accounting Oversight Board (PCAOB) - AS 1105: Audit Evidence: This primary source provides a thorough overview of what constitutes audit evidence and establishes requirements for evaluating its relevance and reliability.
• PCAOB - Staff Guidance on Evaluating Relevance and Reliability of Audit Evidence Obtained from External Sources: This staff guidance document offers insights and practical advice for auditors on assessing the relevance and reliability of audit evidence, especially when obtained from external sources.
• GAAP Dynamics - Introduction to Auditing under PCAOB and U.S. GAAS Standards: This resource introduces the fundamentals of auditing under PCAOB and U.S. Generally Accepted Auditing Standards (GAAS), focusing on defining audit evidence and identifying various forms and sources.
• U.S. Government Accountability Office (GAO) - Professional Standards Update No. 87: This update provides guidance on what constitutes audit evidence in an audit of financial statements and highlights the attributes of information that contribute to its sufficiency and appropriateness.
• PCAOB - Implementation Resources for PCAOB Standards and Rules: A collection of implementation resources provided by the PCAOB, offering guidance and insights on applying PCAOB standards, including those related to audit evidence.

Embracing these resources will not only deepen your understanding of audit evidence but also empower you to apply these principles with confidence and precision. As you continue to navigate through the complexities of audit evidence, remember that each piece of evidence, no matter how small, contributes to the larger narrative of transparency, accountability, and trust in financial reporting.