Audit evidence is obtained from many sources, such as accounting records, contracts, invoices, external confirmations, observation of physical counts and discussions with management. Evidence must be sufficient (quantity) and appropriate (reliability and relevance).
As a general rule, evidence from independent external sources is more reliable than evidence from within the entity, and written evidence is more reliable than oral representations.
Source: BDS 500
Related terms
External confirmationThe auditor obtaining written confirmation of a balance or information directly from a third party (bank, customer, supplier, lawyer).Audit samplingApplying audit procedures to some rather than all of the items in an account or class of transactions in order to reach a conclusion about the whole population.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.Audit documentationThe full set of working papers recording the audit procedures performed, the evidence obtained and the conclusions reached.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.
Last updated: October 22, 2026 · This definition is for general information only.