An internal auditor reviewed bank reconciliations prepared by management of the area under review. The auditor noted that the bank statements attached did not have the bank heading, logo, or…

The correct answer is A. The evidence may not be reliable. For audit evidence to be considered reliable, it must be accurate, truthful, and verifiable. The absence of the bank heading, logo, or address on the bank statements raises concerns about the authenticity and integrity of the documents. Without these elements, there is no…

Conducting Internal Audit Engagements

Question

An internal auditor reviewed bank reconciliations prepared by management of the area under review. The auditor noted that the bank statements attached did not have the bank heading, logo, or address. Which of the following statements is true regarding this situation?

Options

AThe evidence may not be reliable.
BThe evidence is not relevant.
CThe evidence may not be sufficient.
DThe information missing is not relevant to the audit.

How the community answered

(43 responses)

A
79% (34)
B
7% (3)
C
2% (1)
D
12% (5)

Explanation

For audit evidence to be considered reliable, it must be accurate, truthful, and verifiable. The absence of the bank heading, logo, or address on the bank statements raises concerns about the authenticity and integrity of the documents. Without these elements, there is no assurance that the statements are legitimate and have not been tampered with or falsified. Therefore, this evidence may not be reliable for audit purposes.

Topics

#evidence reliability#bank reconciliation#document authenticity#audit evidence quality

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