Which audit evidence is generally considered more reliable?
Correct answer: A. An external confirmation received directly by the auditor
- A. An external confirmation received directly by the auditor
- B. A management-prepared estimate without supporting records
- C. An oral explanation given by the client’s cashier
- D. An unsigned schedule prepared by an accounting clerk
Explanation
Evidence obtained directly from an independent external source is generally more reliable than unsupported internal explanations or schedules. An external confirmation is therefore a strong form of audit evidence when properly controlled.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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