Lesson: Audit Evidence Reliability

In this lesson, the reliability of audit evidence is discussed, emphasizing the importance of its source and nature. Factors that may influence the reliability of audit evidence are explored, such as the independence and knowledge of the information provider. The lesson also highlights certain generalizations about the reliability of audit evidence, discussing the significance of obtaining it from knowledgeable independent sources, the effectiveness of internal controls, and the preferability of direct audit evidence versus indirect or inferred evidence. Additionally, the lesson emphasizes the importance of having audit evidence in documentary form and ensuring the authenticity and accuracy of the source documentation used.