CSAS-2 PARA 5 requires collections of evidence before forming the opinion. Audit evidence is obtained using a variety of Techniques. Discuss the various Techniques used for obtaining Audit evidences.

Collection and Verification of Audit evidence (CSAS-2 PARA 5) The Auditor shall verify compliance with applicable laws, acts rules, regulations and standards. Deviation, if any, shall be recorded. The Auditor shall satisfy himself about compliance of Auditee with the applicable laws, rules and regulations. If any deviation is observed then the appropriate noting of the same shall be made. The Auditor shall obtain complete, relevant and necessary to support the opinion. Audit evidence is obtained using a variety of techniques such as the following: Documents/Records Scrutiny: This is predominating mode of obtaining Audit evidence and involves scrutiny of a wide variety of documents e.g. board resolutions agenda and minutes, notice registers, records, procedure manuals, reports, etc. In auditing, it is often not possible, due to limited resources, to check every document or record. The Auditor wherever necessary, may choose to sample a statistical representative number of documented results, such as monitoring big data or incident reports. An appropriate sampling method will manage any uncertainty to an acceptable level. Testing, Interviews and Analysis: The Auditor should determine whether the controls identified during the preliminary review are operating properly and in manner described by the Auditee. Fieldwork typically consists of interviewing the staff of the Auditee whether formally or informally, reviewing procedure manuals and processes, testing and analyzing compliance with applicable policies and procedures and laws, rules, regulations and assessing the adequacy of controls. This exercise may result in significant findings, which the Auditor should consider while preparing the audit report. Questionnaires: This involves seeking information from relevant persons within the Auditee through issue of formal questionnaires to elicit further information and gather relevant audit evidence. Third Party Confirmation: It is a type of inquiry and involves obtaining, independently of the Auditee, a reply from a third party with regard to some particular information- for example Registrar and Transfer Agents or other third party agencies. Analytical Procedures: Involves comparing data, or investigating fluctuations or relationships that appear inconsistent in various records.