All 18 Audit Evidence & Procedures questions
More in Audit Evidence & Procedures
What is the difference between sufficiency and appropriateness of evidence? What are the main types of audit procedures? What is vouching and what is tracing? Why is inquiry alone usually insufficient audit evidence? What is the difference between tests of controls and substantive procedures? What is external confirmation and when is it used? What is the difference between a test of details and a substantive analytical procedure? What are subsequent events and how does the auditor address them? What is a management representation letter and what is its purpose? What is cutoff testing and why is it important?
Advertisement
Auditing & Assurance › Audit Evidence & Procedures

What factors affect the reliability of audit evidence?

Intermediate

Answer

Reliability is higher when evidence is: obtained from independent external sources; generated under effective internal controls; obtained directly by the auditor (e.g., observation) rather than indirectly; in documentary or electronic form rather than oral; and from original documents rather than copies. Auditors weigh these when evaluating evidence.
Reliability (generally higher -> lower):
external > internal-with-good-controls > internal
auditor-obtained > entity-provided
original > photocopy/oral
Real-world example A bank confirmation received directly is more reliable than a photocopied statement provided by the client.

Common follow-ups: Why is auditor-obtained evidence more reliable? | Is external always more reliable than internal?

Audit Sampling ISA Standards Audit Evidence & Procedures
All 18 Audit Evidence & Procedures questions