Regulation 153 — Audit Regulations 2020
Original Rule Text
# 153. Meaning of audit evidence and sharing the same with auditable entity
Audit evidence refers to the data, information and documents relied upon to arrive at the audit findings and conclusions. Audit evidence is any information used by the auditor to determine whether the subject matter complies with the applicable criteria. While reporting the results of audit, the Comptroller and Auditor General may include such audit evidence in support of audit findings and conclusions as considered necessary. Audit evidence retained as working papers and not included explicitly in the final audit report, may be shared with the auditable entity at various stages of audit.
- Evidence to support audit conclusions required to be obtained
Audit shall obtain sufficient and appropriate audit evidence to support the audit opinion or conclusion.
What This Means
Audit evidence is the data, information, and documents that auditors rely upon to arrive at their findings and conclusions. It includes any information used to determine whether the audited subject complies with applicable rules and criteria. The CAG may include relevant evidence in the audit report to support findings. Evidence retained in working papers (not in the final report) may be shared with the auditable entity at various stages of audit. Critically, audit must obtain sufficient and appropriate evidence to support every audit opinion or conclusion.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit evidence is the foundation for all audit findings and conclusions
- 2It includes any data, information, or documents used to test compliance
- 3The CAG may include evidence in the audit report to support findings
- 4Working papers with evidence not in the final report may be shared with the auditable entity
- 5Audit must obtain sufficient and appropriate evidence — this is a mandatory standard
Practical Example
While auditing the construction of a highway by NHAI, the audit team collects evidence including: contractor bills, measurement books, quality test reports, photographs of the road surface, satellite imagery showing incomplete stretches, and bank statements confirming payments. This evidence supports the finding that Rs 100 crore was paid for work not completed. Key documents are cited in the audit report. Additional working papers are shared with NHAI during the draft paragraph stage so they can verify the audit's conclusions.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What makes audit evidence 'sufficient and appropriate'?▼
Can the auditable entity challenge the audit evidence?▼
Are working papers shared with the auditable entity?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.