Lesson: Introduction to Audit Evidence

In this lesson, Nick Palazzolo, CPA, discusses the importance of audit evidence and how auditors use it to form their opinions. He explains the auditor's objective of planning and performing an audit to obtain sufficient and appropriate audit evidence. The lesson delves into the types of audit evidence, including information that supports and corroborates management's assertions regarding the financial statements, as well as information that contradicts such assertions. Further examined is the use of information produced by the company as audit evidence and how auditors should evaluate its sufficiency and appropriateness. Finally, the lesson explores the process of sampling and audit evidence, as well as the various sources of audit evidence, such as accounting records, bank statements, and reports generated by the client.