Which option represents the least persuasive form of audit evidence?
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Answer: C. Carbon copies of sales invoices inspected by the auditor
Explanation
Internally generated documents like sales invoice carbon copies offer lower persuasive value. Internal documents can be easily manipulated or altered by client personnel. External evidence provides much stronger assurance than internal paperwork generated by the client. Audit evidence reliability increases when obtained directly from independent external sources. Sales invoices are prepared by the client and lack external third-party verification. Auditors perform tests of controls to assess the reliability of internal documentation.
Relying solely on internal documents increases detection risk during financial audits. Auditors seek corroborating external evidence to support internal sales records. Professional skepticism requires questioning the absolute reliability of client-generated paperwork. Bank statements obtained from the client are moderately reliable but still client-handled. Third-party documents obtained directly provide high persuasiveness due to independence. Computations made by the auditor provide strong independent verification of figures.
- Subject
- Accounting and Finance
- Category
- Auditing
- Topic
- —
- Difficulty
- medium
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