Final answer:
Auditing requires adequate and reliable evidence; challenges can arise when evidence is missing, documents are altered, or responses are implausible. Weak or missing evidence undermines the credibility of the audit. Proper evidence collection and critical evaluation are essential for accurate audit outcomes.
Step-by-step explanation:
Auditing and Evidence Collection
When conducting an audit, it is crucial to gather adequate and reliable evidence. However, auditors frequently encounter issues such as missing, unavailable, or altered documents; unexplained items on reconciliations; and inconsistent, vague, or implausible responses to inquiries. These issues can indicate potential irregularities in the object being measured and substantially affect the audit outcome.
Research highlights the complexities in defining and studying empirically challenging subjects, which can also arise in audits where qualitative or quantitative data is necessary to substantiate findings. In writing and presentations, the lack of credible evidence, inappropriate transitions, or missing visuals can lead to disconnection and lack of clarity. Persuasive arguments or reports, particularly those proposing solutions to problems, must incorporate evidence rooted in facts that is relevant and adequately supports the claim being made.
When evidence is insufficient or respondents provide inaccurate answers, such as underreporting alcohol consumption in surveys, the credibility of the data is undermined. Therefore, the importance of robust evidence collection and critical evaluation of responses in auditing cannot be overstated to ensure the accuracy and integrity of the audit process.