Audit Evidence
Financial Dictionary — Auditing
Definition
Audit evidence is information used by auditors to support their conclusions and opinion.
Detailed Explanation
Evidence may include documents, confirmations, observations, recalculations, and analytical procedures, and should be sufficient and appropriate.
Common Uses
- Used in audit planning to understand risks and design procedures.
- Used during testing (controls/substantive) and documentation of audit evidence and conclusions.
- Used during testing (controls/substantive) and documentation of audit evidence and conclusions.
Practical Example
- Example: The auditor references **Audit Evidence** when designing procedures and documenting conclusions in the audit file.
Why This Term Matters
- Why it matters: Supports high-quality, defensible audit conclusions and helps detect material misstatements and control weaknesses.