Introduction to Audit Evidence & Documentation
Why Audit Evidence Matters
Audit evidence is the information an auditor obtains to support the audit opinion. Because auditors cannot verify every transaction, they gather sufficient appropriate evidence to conclude whether the financial statements are free from material misstatement. Audit documentation records the work performed and the conclusions reached.
- Audit evidence supports the auditor's opinion.
- Audit documentation records the audit work performed.
- Evidence must be both sufficient and appropriate.
Note
No audit opinion should be issued unless it is supported by adequate audit evidence.
Summary
Audit evidence and documentation provide the foundation for every independent audit.