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More in Audit Evidence & Procedures
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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?

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All 18 Audit Evidence & Procedures questions