Final answer:
There are four basic types of audit evidence: physical examination, documentation, observations, and inquiry. This evidence must be rooted in verifiable facts and experience, and when derived from a source, must be properly cited as per audit standards.
Step-by-step explanation:
Types of Audit Evidence
Evidence is crucial in audit and attestation engagements, with different types of evidence being applicable depending on the context of the engagement and the assertions being tested. The four basic types of audit evidence are:
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It's important to select audit evidence that is rooted in verifiable facts and relevant experience. Additionally, auditors must ensure that the evidence selected aligns well with the topic at hand and fulfills any specific criteria set by relevant auditing standards. When evidence is derived from a source, it is necessary to cite the evidence in accordance with professional standards.