How does the auditor evaluate the results of audit procedures? What types of qualitative factors will the auditor consider when encountering an error? How will the results affect the audit conclusion?

Answer:

The auditor evaluates the results of audit procedures by taking into consideration all pertinent audit evidence. This is whether it would appear to corroborate or contradict the assertions made by management about the financial statements. The analytical audit procedures perform should give the auditor an indicator on all likely misstatements.

Even those believe to be minor by the auditor must be taken into consideration. These results will give a clear indicator whether misstatements are due to fraud or some other error of internal controls. The qualitative factors an auditor will consider during an encounter with an error are the accounting practices of the company. Other conditions determined during the audit as to the assessment of risk of material misstatements that are due to fraud. The fair presentation of the financial statements as well as its disclosures is also considered.

The sufficiency of audit evidence will also be determined by the auditor. A qualitative factor to be considered is the biasness of the management when corrected errors or a bias of selection or applied accounting principles by the entity. This could affect the audit conclusion.