Evidence gathered by auditors from outside an enterprise is reliable related to which concept?

• A. It is reliable
• B. It is never reliable
• C. It is always unreliable
• D. It is always independent

Answer: (A)

External evidence is considered reliable because it comes from sources outside the entity being audited, such as banks, suppliers, or regulators. This independence makes the information less subject to management manipulation and allows the auditor to verify claims with a third party. Reliability of external evidence can vary depending on the source and how it was obtained, but overall it is viewed as more trustworthy than internal evidence. The other statements are extremes (never reliable, always unreliable, or always independent) and don’t fit because reliability can depend on source quality and context, even though external evidence is typically credible.