ACCA Audit and Assurance (F8) Practice Exam

What is the definition of audit evidence?

1. The opinions formed by the audit team

2. The information obtained for reaching conclusions for the audit report

3. The results of client interviews during the audit

4. Documentation that is required by regulation

The correct answer is: The information obtained for reaching conclusions for the audit report

The definition of audit evidence is best captured by the concept of information acquired to support the auditor's conclusions in the audit report. This encompasses all types of data and information collected during the audit process that can help the auditor assess the accuracy and reliability of financial statements. Audit evidence is crucial because it forms the foundation for the auditor's opinion on whether the financial statements present a true and fair view of the entity's financial position and performance. This understanding extends to encompass various forms of information, including physical evidence, confirmations, analytical procedures, and other types of data that the audit team collects and evaluates. In this context, the varied and comprehensive nature of audit evidence allows auditors to form a well-supported opinion. In contrast, opinions formed by the audit team, results from client interviews, or documentation required by regulation do not capture the broad and inclusive nature of evidence used to substantiate conclusions. These elements play a role in the audit process but do not specifically define what constitutes audit evidence itself.