During the verification of transactions, the auditor examines the supporting documents and records. In scrutiny of documents, the auditor comes across various records and documents and if he comes across any unusual tran
CS Professional · Internal and Forensic Audit · PYQS · June 2026
During the verification of transactions, the auditor examines the supporting documents and records. In scrutiny of documents, the auditor comes across various records and documents and if he comes across any unusual transactions, he verifies the same thoroughly. This is called scanning of records which require expertise and experience. The auditor can rely on the documents depending upon the origin (source) of the documents and the efficiency of the internal control system in operation. You, a practising Company Secretary have deputed a newly appointed assistant for carrying out preliminary routine internal audit procedures. You have assigned him the task of vouching. Your assistant is curious to know about vouching. You have been asked to answer following questions? What are the major reliability categories of documents based on their origin and availability?
Answer & Explanation:
Documents which have their origin in the hands of the third parties and held by third parties are more reliable than the documents which have their origin in the organization itself and held by the organization. Based on their origin and availability, the reliability of documents can be categorised as under:- Documents which have their origin in the hands of the third party and held by them – Most reliable evidence. Documents which have their origin in the hands of the third party and held by the organization - More reliable. Documents which have their origin in the hands of the organization and held by the third party - Reliable. Documents which have the origin in the hands of the organization and held by the organization - Reliable only if the internal control is effective.
Topics: Audit Evidence
Related Questions in this Topic
- As per Association of Certified Fraud Examiners (ACFE) 2022 report 85% of all fraudsters displayed at least one behaviou...
- The development of digital technologies has led to the growth of the internet, social media, and other digital platforms...
- The development of digital technologies has led to the growth of the internet, social media, and other digital platforms...
- The Bhartiya Sakshya Adhiniyam play an important role in determining the admissibility and weight of evidence in case in...
- Companies Act 2013, goes beyond professional liability for fraud and extends to personal liability if a company continue...