Audit evidence
Audit evidence is information used by the auditor in reaching the conclusions on which the audit opinion is based. It includes accounting records and other corroborating or contradictory information. The auditor needs sufficient appropriate evidence, considering the risk of misstatement, relevance and reliability of the information and the effectiveness of procedures performed.
Worked example
To test a receivable, an auditor examines the sales invoice and dispatch record and obtains an external customer confirmation.
Common mistake
A large quantity of weak evidence does not automatically compensate for poor relevance or reliability.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |