How to know if Audit evidence are reliable?

All audit evidence are deemed reliable. Audit evidence should be sufficient and appropriate. Auditor’s should acquire accounting records and reliable information.

Compare different audit evidence:

  • Outside sources evidence are more reliable than internally generated audit evidence because they are persuasive rather than conclusive.
  • Audit evidence coming from effective internal control evidence are more reliable than ineffective internal control.
  • Direct knowledge are more reliable than indirect knowledge. Auditor’s direct knowledge.
  • Orally and written or documentary evidence. Written representation are more reliable than oral evidence.
  • Original documents are more reliable than photocopies of evidence.

About Jonathan Ruiz CPA

Newbie Mentor and one of the influential author in the Philippines setting. His also the founder of PAM Academy and Developer of PAM PSE TRACKER application.
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