Audit evidence is the Information used by the auditor in arriving at the conclusions on which the auditor’s opinion is based. Audit evidence includes both information contained in the accounting records underlying the financial statements and other information.
Audit documentation serves a number of purposes, including the following
1) Evidence of the auditor’s basis for a conclusion about the achievement of the overall objectives of the auditor
2) Evidence that the audit was planned and performed in accordance with SAs
3) Assisting the engagement team to plan and perform the audit.
4) Assisting members of the engagement team responsible for supervision to direct and supervise the audit work, and to discharge their review responsibilities in accordance with SA 220.
Objective of SA 210:- The objective of the auditor is to accept or continue an audit engagement only when the basis upon which it is to be performed has been agreed, through:
a) Establishing whether the preconditions for an audit are present; and
b) Confirming that there is a common understanding between the auditor and management and, where appropriate, those charged with governance of the terms of the audit engagement.