Audit evidence

Audit evidence (also referred to as evidential matter) refers to the necessary information that an auditor gathers in order to form a credible opinion on the assertions by the client's management that are inherent in the financial statements. This evidence will therefore often include information relating to the completeness, validity and accuracy of the recorded value of assets, liabilities and equity of the client entity. Some examples of audit evidence follow.

Auditors gather evidence of sufficient quantity and appropriate quality to form their opinion on the financial statements. However, see Journal of Accountancy article Top 10 Audit Deficiencies which indicates that 80% of audit deficiencies in SEC enforcement actions over a 10 year period related to the auditor's failure to gather sufficient audit evidence.

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