Perform tests several times during the year, rather than only at year end.
bc: Accounting records and other evidence may be available only in electronic form. For example, if EDI is used, purchase, shipping, billing, cash receipt, and cash payment transactions often occur by exchange of electronic messages instead of source documents. In an image processing system, documents are scanned and converted into electronic form for storage purposes, and the source documents may not be retained. Thus, electronic evidence may exist at a given moment in time, but it may not be retrievable after a specified period if files are changed and no backups exist. Consequently, the auditor should consider the time during which information is available to determine the nature, timing, and extent of substantive tests and tests of controls. For example, the auditor may change the timing of audit tests by performing them several times during the year instead of only at year end.
Minutes of meetings
bc: Audit evidence is all information used by the auditor to draw the conclusions on which the auditor's opinion is based. It consists of (1) accounting records and (2) sources of information other than accounting records. Accounting records by themselves do not provide sufficient appropriate evidence. They include initial entries (manual or electronic) and supporting records. Examples are (1) checks, (2) electronic funds transfers (EFTs), (3) invoices, (4) contracts, (5) the general and subsidiary ledgers, (6) journal entries and other adjustments of the statements, (7) worksheets, (8) spreadsheets, (9) reconciliations, (10) cost allocations, (11) computations, and (12) disclosures. Sources of information other than accounting records include (1) minutes of meetings; (2) external confirmations; (3) analysts' reports; (4) comparable data about competitors; and (5) information obtained by the auditor from (a) inquiries (e.g., management's written representations), (b) observation, (c) inspection, (d) recalculation, (e) reperformance, and (f) analytical procedures.