Question

Data Reliability

Evaluating data reliability is a critical part of the audit process. Explain the differences among the following in terms of reliability:

• Data from internal vs. external sources
• Written data vs. verbal conversation records
• Data obtained from direct vs. indirect methods
• Data obtained from original documents versus electronic scans

Answer 1

Evidence is considered more reliable when it is:

• obtained from an independent external source;
• generated internally but subject to effective control;
• obtained directly by the auditor;
• in documentary form; and
• in original form.

1. data obtained from external independent sources are more relaible than internal source.

2.written data are always more reliable as it is a audit evidence also.

3.Evidence obtained directly by the auditor is more reliable than evidence obtained indirectly.

4.Evidence provided by original documents is more reliable than evidence provided by photocopies or facsimiles, or documents that have been filmed, digitized, or otherwise converted into electronic form, the reliability of which depends on the controls over the conversion and maintenance of those documents.