Page 6 - Auditinf Electronic System

3. The definition of audit evidences:
Audit evidence: is any information obtained by the auditor to determine whether

the information being audited is stated in accordance with
established criteria or not, and whether to support the assertion
claimed or contradict it.
Evidence takes many different forms, including:
- Electronic and documentary data about transactions
- Written and electronic communication with outsiders
- Observations by the auditor
- Oral testimony of the auditee (client)
Why audit evidence needed: To do an audit, there must be information in a
verifiable form and some standards (criteria) by which the auditor can evaluate
the information against to form an objective opinion.

4. The field of external audit:
Are the management assertions related to the entity`s financial statements:

▪ Income statement
▪ Balance sheet
▪ Retained earnings statement
▪ Owners' equity statement
▪ Footnotes (related disclosure)

5. The assertion measurement (established criteria):
It is a measurement of credibility for management assertions, so it is an applicable

financial reporting framework, which included in Egypt the following:
1- Egyptian Accounting standards (EAS)
2- International financial reporting standards (IFRS)
3- Generally Accepted Accounting principles (GAAP)
4- Related laws and regulations (as tax law).

Auditors routinely perform audits Whether of quantifiable information, including
companies’ financial statements and individuals’ federal income tax returns or of
more subjective information, such as the effectiveness of computer systems and the
efficiency of manufacturing operations.

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‫جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية‬