Let’s consider the purpose of the evidence.

Essentially it is required to convince the Business Area Owner / Nominated Person that the finding is valid. We cannot impose findings, we must be able to demonstrate the validity of the finding based on objective evidence.

How much evidence is required?

We have to take into consideration the time factor (time is precious) / sufficient evidence for the auditor to form an opinion / the need to demonstrate to the auditee the existence of the issue.

Can we trust the evidence?

Evidence that can be considered trustworthy essentially means it is accurate, credible, and where the integrity of the evidence has not been compromised.

Another measure of the effectiveness of the evidence would be its repeatability – will the next auditor see the same issue?
! Note that evidence should be free from any bias (e.g. the auditor's preconceived ideas).
Greater reliance can be placed on evidence that emanates from independent sources.

Can we validate the evidence?

Evidence which can be confirmed by cross-checking with other evidence is considered objective.
Evidence should accurately show connection and/or engagement with the functioning of a system, or part of a system, operated by the auditee.

Factors to consider when judging the quality and quantity of audit evidence:

The purpose for which the evidence will be used, for example - internal/external or in support of a contract – as part of an accident or incident investigation (in general, the higher the level of audit importance, the higher the standard of evidence that is required).
The same could be said in respect of the potential for legal action, controversy, or unexpected issues related to the audit findings driving a need for a higher standard of evidence.

The Role of Auditor Competence

An additional factor concerns the competence of the auditor and the ability of the auditor to collect and analyse data – being able to see the defects within a system is an attribute of a strong auditor.

It is the responsibility of the auditor as part of the audit preparation to determine the methods that will provide the best quality of evidence for the particular audit.

What options are available to obtain evidence?

•         Oral / Inquiry
•         Analytical
•         Direct inspection
•         On-site verification
•         Observation
•         Interviews
•         Preparation of questionnaires
•         Previous audit reports from the audit bodies
•         Analysis

Pay attention to the following considerations:

a) It is the responsibility of the auditor as part of the audit preparation to determine the methods that will provide the best quality of evidence for the particular audit.
b) Information in support of the audit may come from a myriad of sources including databases, documents, procedures, processes, instructions, previous audit reports, inspection reports, management reviews, organisational and planning documents.
c) Auditors must determine the reliability of data that is significant to the audit questions by review and corroboration, and by testing the auditee's internal controls over information, including general and application controls over computer-processed data provided by third parties.
d) The degree to which information may be used as audit evidence depends on the extent to which its quality can be established and its significance concerning the audit findings.
e) The auditor must be aware that a risk exists that his/her presence may distort or prejudice what would normally occur, thus reducing the quality of the evidence. (Do you agree?)
Information was gathered from people through interviews and focus groups. Such information may take the form of written or oral statements.
Oral evidence is generally important in performance audits, as information obtained in this manner is up-to-date and may not be available elsewhere. (However, information should be corroborated and statements confirmed if they are being used as evidence.)

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