Lesson: Inspecting the Audit Evidence

This lesson delves into the process of inspecting audit evidence, which involves examining records, documents, and tangible assets. The lesson covers the varying degrees of reliability of records and documents based on their nature and source, as well as the importance of testing controls and obtaining authorization. It also highlights the significance of examining tangible assets such as inventory items and machinery, and how observation plays a crucial role in evaluating the performance of control activities. Additionally, the lesson underscores the limitations of observation in terms of timing and how an auditor's presence might influence the process being observed.