CA Final · Advanced Auditing, Assurance and Professional Ethics · Audit Evidence

The auditor of Sundaram Engineering Ltd finds that the board minutes support a management claim about a major contract. The auditor also obtains a letter directly from the customer which is consistent with the minutes. What is the effect on the assurance obtained, as per SA 500?

The auditor obtains greater assurance. Consistent evidence from different sources, especially corroboration from a source independent of the entity, gives more assurance than internally generated items such as minutes of meetings considered individually.

1. ANo additional assurance, as the minutes alone are conclusive
2. BGreater assurance, because consistent evidence from different sources, including one independent of the entity, ordinarily gives more assurance than items considered individuallyCorrect
3. CLess assurance, because two sources create a risk of duplication
4. DAssurance depends only on the number of documents, not their sources