What is the focus of the inspection evidence-gathering procedure?

The focus of the inspection evidence-gathering procedure is on examining documents and physical assets. Inspection as a procedure involves auditors reviewing tangible records, such as financial statements, contracts, and physical items like inventory and equipment, to verify their existence and accuracy. This type of evidence is crucial because it provides direct insight into a company's financial position and operations, allowing auditors to assess whether the information presented in the financial statements is reliable and conforms to the applicable accounting standards.

Inspecting documents provides a basis for the auditor to confirm transactions and balances, while evaluating physical assets helps ensure that they are accurately reported in the financial statements. This kind of evidence is highly persuasive and objective, making it a vital component of the audit process. As such, focusing on the examination of documents and assets aligns perfectly with the idea of gathering robust and verifiable evidence to support audit conclusions.