CAT / FIA FAU Syllabus D. Audit Evidence And Procedures - The relevance and reliability of audit evidence - Notes ^{2 / 2}

Relevant evidence will be evidence that relates directly to the assertion being tested – if it doesn’t then why is it being used?

Reliable evidence is evidence which the auditor can have faith is trustworthy.

ISA 500 sets out types of evidence which are more reliable than others:

More Reliable

• Better when from independent, external sources

• Better when generated internally but the related controls are effective

• Better when obtained directly by the auditor

• Better when in paper or electronic form rather than just spoken

• Better with original documents than photocopies

Less Reliable

• Evidence generated internally to the entity

• Internal evidence not subject to strong controls

• Indirect or inferred evidence

• Oral

• Photocopies, faxes etc.