Write a short note on Audit Evidence.

Audit evidence may be any document, material or other source of material which is available to substantiate any assertion made in financial statement or transaction recorded in the books of accounts. The auditor by applying his professional judgement, gathered from the evidence collected, forms his opinion as to the truthfulness and fairness of financial statement, expressed through his audit report.

Statement on Standard Auditing Practices (SAP -1):

Basic principles governing and Audit issued by the ICAI, states. The auditor should obtain sufficient appropriate audit evidence through performance of compliance and substantive procedures to enable him to draw reasonable conclusions therefrom on ‘which to base his opinion on the financial information.

For each assertion, there may be a number of evidences to be collected. Such assertions are varied in nature and is differ under different circumstances. Such evidence may be documentary evidence or personal inquires, ramification and inspections. The possibility that, there may be two accruing mediums

• Types of documents maintained and inspection.
• Means of getting them.