Reliability of audit evidence The Auditing Standards Board established guidelines to assist auditors in evaluating the reliability of audit evidence. Discuss the criteria for the more reliable types of evidence and include an example for each
Evidence that is considered to be more reliable includes:
? Directly observable evidence such as counting inventory or observing fixed assets.
? Evidence derived from a client's strong internal control structure such as reconciliations or the information system itself.
? Evidence from independent external sources such as confirmations from banks, customers and attorneys.
Examples provided by the students may vary and the instructor must use his or her judgment.
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