Audit evidence has two primary qualities for the auditor; relevance and reliability. Given the choices below, which provides the auditor with the most reliable audit evidence?
A) general ledger account balances
B) confirmation of accounts receivable balance received from a customer
C) internal memo explaining the issuance of a credit memo
D) copy of month-end adjusting entries

Question

Quizplus · Accepted Answer

Confirmation of accounts receivable balance received from a customer provides the most reliable audit evidence as it is an external source that confirms the existence and accuracy of the account balance. The other choices may be relevant but do not provide as much reliability in terms of evidence.

Audit Evidence Has Two Primary Qualities for the Auditor; Relevance