Ch 4 · Audit Evidence & Documentation

⭐ Important points (exam-critical)

• ⭐External confirmation — positive (response required) vs negative (only if disagreement).
• ⭐SA 540 — Audit of accounting estimates: management bias risk.
• ⭐Use of expert (SA 620) — auditor still responsible for opinion.
• ⭐Subsequent events (SA 560) — Type I (adjusting) and Type II (non-adjusting per AS 4 / Ind AS 10).