What is Reliability of audit evidence?
In short
Audit evidence is generally more reliable when it comes from independent sources outside the entity, is produced under effective controls, is obtained directly by the auditor, is documentary and is an original rather than a copy.
Key takeaways
- Observation and recalculation by the auditor beat evidence obtained by inference.
- A written confirmation from a third party beats an oral response from management.
- These are generalizations, and exceptions exist, for example when an outside source isn't knowledgeable.
Where it's tested
AUD: Evidence: Types & Procedures — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Which source of audit evidence is generally considered most reliable?