Which of the following is normally the most reliable source of audit evidence? A. Internal audit B. Suppliers’ statements C. Board minutes D. Analytical review
Question
Which of the following is normally the most reliable source of audit evidence? A. Internal audit B. Suppliers’ statements C. Board minutes D. Analytical review
Solution
The most reliable source of audit evidence is typically D. Analytical review.
Here's why:
A. Internal audit - While internal audits can provide valuable information, they may not always be the most reliable source of evidence because they are conducted by individuals within the organization who may have biases or conflicts of interest.
B. Suppliers’ statements - These can provide useful information, but they are secondary sources that may not be entirely accurate or up-to-date.
C. Board minutes - These are useful for understanding the decisions made by the board of directors, but they may not provide detailed or comprehensive information about the company's financial situation.
D. Analytical review - This involves a detailed examination of the financial statements and other relevant documents, which can provide a comprehensive and accurate picture of the company's financial situation. Therefore, it is usually considered the most reliable source of audit evidence.
Similar Questions
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