ACCA AA · Chapter 9 · Question 2 of 10
Which of the following sources of audit evidence about a trade receivable balance is generally the most reliable?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) A confirmation received directly by the auditor from the customer
Explanation
ISA 500 states that evidence from independent external sources, evidence obtained directly by the auditor and documentary evidence are generally more reliable. A confirmation sent and received directly by the auditor meets all three conditions. Photocopies, oral explanations and client-generated reports are less reliable.
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