Due professional care, the third general standard, is concerned with what is done by the independent auditor and how well it is done. For example, due care in the matter of audit documentation requires that audit documentation of the evidence gathered by the auditor meets which of the following criteria?

Audit evidence is a basic principle of an audit. It can be documentary, visual, or oral.  Here are some characteristics of good audit evidence: Sufficient: Available in adequate quantity Reliable: Persuasive rather than conclusive Source: Internal if obtained within the enterprise Nature: Documentary, visual, or oral Relevant: Depends on the purpose of audit procedures  Some methods of obtaining audit evidence include: Inspection: Studying important ratios and trends, and examining unusual fluctuations and items Inquiry: An increasingly important method due to the increasing use of... Show more

Audit evidence is a basic principle of an audit. It can be documentary, visual, or oral. 

Here are some characteristics of good audit evidence:
Sufficient: Available in adequate quantity
Reliable: Persuasive rather than conclusive
Source: Internal if obtained within the enterprise
Nature: Documentary, visual, or oral
Relevant: Depends on the purpose of audit procedures 

Some methods of obtaining audit evidence include:
Inspection: Studying important ratios and trends, and examining unusual fluctuations and items
Inquiry: An increasingly important method due to the increasing use of “soft information” in financial statements 

Audit documentation is an essential part of the audit process. It provides a trail of evidence that supports the auditor's opinion on the fairness of the financial statements. 
Auditors look for any misstatement, regardless of how it is caused. If they suspect that material misstatements might be due to fraud, they are required to take a different approach to evidence-gathering.

Show less