Form of audit evidence

  • Creator
  • #233022
    Zama Mgudlwa

    Please assist with this question. My understanding is, based on the extract from the book: “The most reliable
    evidence is any information that is obtained directly by the auditor, most often through firsthand observation.”


    So I chose A, however, this answer is incorrect, although, these were observations conducted by the auditor:

    82. Question ID: CIA2 M2 Q071 (Topic: 2B. Evaluate Evidence) 

    Which of the following would be the most persuasive form of audit evidence?

    • The internal auditor observed payroll check distribution.wrong
    • The internal auditor examined employees’ time cards to support direct labor charges.
    • The internal auditor asked the procurement manager how a purchase order is filled out.
    • The internal auditor received a positive confirmation from a customer.correct
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  • Author
  • #233024
    Brian Hock
    HOCK international

    Hello, Zama Mgudlwa,

    Yes, the most reliable information is information that is collected by the auditor. However, this question is asking what is the most persuasive.

    Simply watching payroll check distribution is reliable, but it does not very persuasive about whether or not payroll is being done correctly. On the other hand, a confirmation that is received from a customer is going to be much more persuasive in determining whether the account receivable balance is correct.

    So, the key word in this question is persuasive since that is what we are looking for.

    I hope that this helps.


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