ACCA Audit and Assurance (F8) Practice Exam

What criteria assess the reliability of audit evidence?

1. External, auditor, entity, written, originals

2. Timeliness, completeness, transparency, accuracy, compliance

3. Independence, objectivity, consistency, accuracy, sufficiency

4. Professionalism, competence, thoroughness, relevance, timeliness

The correct answer is: External, auditor, entity, written, originals

The correct choice focuses on the types of evidence that auditors can rely upon when conducting an audit. Understanding the nature of audit evidence is crucial, as it directly impacts the quality and reliability of the audit conclusions. In this context, external evidence refers to information obtained from independent sources outside the entity being audited, which typically carries more weight and reliability than internal evidence. The auditor's role in obtaining and evaluating this evidence further strengthens the findings, as auditors are trained professionals who apply rigorous standards. Additionally, written evidence is generally more reliable than verbal confirmations, and original documents are preferred over copies because they are less likely to be altered or forged. This choice emphasizes various aspects essential for assessing the reliability of audit evidence, creating a strong basis for the auditor's conclusions and reducing the risk of relying on potentially misleading information. The other options provide criteria that may be relevant in different contexts but do not specifically highlight the fundamental characteristics of audit evidence necessary to gauge its reliability during an audit.