Types of Evidence
This involves examining documents to verify recorded transactions.
What is inspection of records or documents?
Sufficiency refers to the____________ of audit evidence gathered.
What is quantity?
This procedure involves tracing documents back to the general ledger to verify the accuracy of financial statements.
What is vouching?
Audit evidence obtained directly by the auditor is more reliable than evidence obtained through this party.
What is the client?
Evidence from a bank statement is considered ____reliable than oral evidence from management.
What is more?
This type of evidence is collected when the auditor watches a client's process, such as inventory counting.
What is observation?
Appropriateness of audit evidence is determined by its_____ and______.
What is relevance and reliability?
This procedure requires sending letters to third parties to verify the existence of an account balance.
What is confirmation?
Audit evidence obtained from an internal document is less reliable when _____has access to alter it.
What is management?
Evidence that is generated independently of the client, such as a supplier invoice, is considered _________.
What is highly reliable?
This is obtained when the auditor directly asks management or employees about a specific transaction or control.
What is inquiry?
This type of evidence is more reliable: evidence from external parties or from the client's internal management.
What is evidence from external parties?
This procedure involves observing the physical count of inventory to ensure it matches the recorded quantities.
What is observation?
When an auditor asks a lawyer about pending litigation, the evidence is coming from this type of source.
What is an external source?
This type of evidence, gathered by the auditor personally, is usually more reliable than indirect evidence.
What is direct evidence?