Auditing & Assurance

Auditing & AssuranceAudit EvidenceAudit EvidenceTopic:

3What is audit evidence?

Evidence gathered in the course of an audit that supports the auditors opinion and conclusions.

To be competent evidence must be:RelevantMust relate to the audit objective. E.g. purchase order not relevant to prove that goods were actually received.ReliableIndependent sources have greater reliability than those within the client organization.Strong internal control increases reliability of evidence created within the client organization.Directly obtained evidence is more reliable than evidence obtained second hand.