Lesson: Types of Evidence

This lesson covers various types of evidence that auditors collect to verify transactions and accuracy of financial records. Some of these include remittance advice, shipping documents, bank statements, receiving reports, and bills of lading. Remittance advice is used by companies to inform suppliers of payment made and can be used by an auditor to verify expenditures. Shipping documents help track the movement of goods in shipments and can be used by an auditor to track inventory and monitor shipment progress. Bank statements provide evidence of a company's financial activity and help auditors compare account balances. A receiving report documents the receipt of goods and verifies their existence, allowing an auditor to ensure that the recorded goods are accurate. Lastly, a bill of lading allows the auditor to verify the accuracy of shipments of goods and assess the legitimacy of inventory transactions.