We determine whether the procedures performed to date provide sufficient and appropriate evidence over the completeness, occurrence and measurement of revenues. The higher our assessment of risk, taking into account the types of potential misstatements that could result from the identified risks and the likelihood and magnitude of potential misstatement, the more persuasive audit evidence we seek to obtain.
When further evidence is required, we consider performing one or more of the following:
1.Perform Income analysis
► Using Income Analysis, to see the trend of net income by month for the period and investigate amounts that fall outside of our threshold.
► Determine the extent of evidence this provides over the completeness and occurrence of revenues (SUBSTANTIVE appendix 1.5 & 1.6).