What are the qualities of audit evidence?

The qualities of good audit evidence are determined in relation to its relevance, reliability, and Sufficiency. Reliability of audit evidence Documentary evidence is more reliable than oral evidence. Auditor’s own evidence is more reliable than those of others. Original evidence is more reliable than photocopies.

What is reliable audit evidence?

The reliability of evidence depends on the nature and source of the evidence and the circumstances under which it is obtained. For example, in general: Evidence obtained from a knowledgeable source that is independent of the company is more reliable than evidence obtained only from internal company sources.

What is primary audit evidence?

Primary sources of audit evidence involve the following: Elemental documentation of the company and the accounting system. Tangible assets. Personnel and the administration of the company. Suppliers, customers, knowledge of the company’s business and other parties dealing with the company.

Is some audit evidence better than other audit evidence?

Evidence from external sources is more reliable. Evidence obtained by auditor through direct observation, inspection, physical verification, and computations are better than the evidence obtained indirectly.

What are the characteristics of sufficient audit evidence?

In conclusion, sufficient and appropriate audit evidence include:

• Quality of audit evidence.
• Quantity of audit evidence.
• Reliability of sources of evidence obtained.
• Reliability of internal control over financial reporting.
• The relevance of the evidence obtained.
• Reliable form audit evidence.

  How much audit evidence is sufficient and appropriate?

  In the audit context, the “sufficient” usually refers to the quantity while the “appropriate” usually refers to the quality. In this case, sufficient appropriate audit evidence means that auditors need to obtain a number of audit evidence and the quality of such evidence should meet the acceptable auditing standards.

  What is reliability of audit evidence?

  Reliability. The reliability of evidence depends on the nature and source of the evidence and the circumstances under which it is obtained. For example, in general: Evidence obtained directly by the auditor is more reliable than evidence obtained indirectly.