Skip to content

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

While auditing Sundaram Logistics Ltd, CA Nisha finds that the minutes of the board meeting, a management representation and the accounting records all support a claimed advance to a related vendor. A bank confirmation obtained directly from the vendor's bank also supports it. What does SA 500 say about the effect of consistent evidence from different sources?

Consistent audit evidence obtained from different sources, or of a different nature, ordinarily gives more assurance than the same items considered individually. Independent corroboration, such as an external confirmation, strengthens internally generated evidence like accounting records, minutes and management representations.

  1. AConsistency across sources gives more assurance than items considered individuallyCorrect
  2. BOnly the evidence from the independent source counts and the rest has no value
  3. CConsistent evidence from several internal sources is worth less than one item
  4. DEvidence from different sources has no effect on the assurance obtained

Explanation

SA 500 states that more assurance is ordinarily obtained from consistent audit evidence from different sources or of a different nature than from items considered individually. Corroboration from an independent source adds to evidence generated internally, such as records, minutes or representations. The other options contradict this.

Did you get it right without looking?

One question tells you little. A timed set on Audit Evidence shows your real accuracy, how long you take and where you lose marks.

Practise Audit EvidenceFree diagnostic mock

More Audit Evidence questions