Which of the following sources of audit evidence is most reliable?
A.
Evidence obtained directly from an untested third party.
B.
Uncorroborated audit evidence obtained indirectly from an employee.
C.
Undocumented audit evidence obtained directly from a manager.
D.
Timely audit evidence obtained directly from a customer.
The Answer Is:
D
This question includes an explanation.
Explanation:
In internal auditing, the reliability of evidence is critical. According to IIA standards, evidence that is obtained directly from an external source, such as a customer, is generally considered more reliable, especially when it is timely.
IIA Standard 2310 – Identifying Information:
This standard requires that internal auditors obtain sufficient, reliable, relevant, and useful information to achieve the engagement’s objectives. Evidence obtained directly from external sources is often deemed more reliable because it is less likely to be biased or manipulated.
Direct Evidence:
Evidence obtained directly from a customer is considered highly reliable because it comes from an independent and external party. It is less likely to be influenced by internal pressures or conflicts of interest.
Timeliness:
The timeliness of evidence also affects its reliability. Recent and relevant information is more likely to accurately reflect the current state of affairs, making it more reliable for decision-making.
Option A (Untested third party): Although external, the reliability of evidence from an untested third party is uncertain until their credibility is established.
Option B (Uncorroborated evidence from an employee): This is less reliable as it may be subject to bias or self-interest.
Option C (Undocumented evidence from a manager): Undocumented evidence is generally less reliable as it lacks supporting documentation that can be verified.
Detailed Explanation:Why Not Other Options?
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