Final Answer:
Audit evidence comprises various forms of information and sources that collectively contribute to the audit process. Therefore the correct option is
d. All the above.
Step-by-step explanation:
Audit evidence is the information gathered by auditors to form conclusions and support their findings. This evidence can be derived from various sources, including oral statements made by management. These verbal communications are essential as they offer insights into management's perspectives, intentions, and explanations regarding financial transactions and operations.
Additionally, written communications, such as contracts, invoices, emails, and financial statements, form a vital part of audit evidence. These documents provide tangible records that auditors can scrutinize to verify the accuracy of financial reporting and transactions. They serve as concrete proof of the transactions and activities being examined.
Moreover, auditor observations play a significant role in audit evidence. These observations entail the physical inspection of assets, operations, and processes. By directly witnessing operations or examining assets, auditors can assess their condition, existence, and valuation, adding another layer of evidence to support their findings.
Therefore the correct option is d. All the above.