Auditors communicating directly with a client's bank regarding the existence of the client's cash account balances at year-end would be an example of an:
A)audit issue
B)independent source
C)internal source
D)illegal communication

Question

Quizplus · Accepted Answer

Independent sources refer to information obtained from a third party outside of the organization being audited. In this case, the bank is an independent source as it is separate from the client and can provide direct confirmation of the client's cash account balances at year-end. This is a common audit procedure to obtain reliable evidence about the existence and completeness of the client's cash balances.

Auditors Communicating Directly with a Client's Bank Regarding the Existence