Persuasiveness / Quality of Audit Evidence

Performance Standard 2310 (IIAM): 

Identifying Information says that “ auditors must identify sufficient, reliable, relevant and useful information to achieve the engagement’s objectives

Persuasiveness / Quality of Audit Evidence refers to how convincing audit evidence is in supporting the auditor’s conclusions and audit opinion. It is not about a single piece of evidence, but the combined effect of all evidence obtained.

Persuasive means convincing and capable of influencing a conclusion or decision.

In an auditing context, persuasive audit evidence refers to evidence that is strong enough to convince a prudent and informed person that the auditor’s conclusion is reasonable and well-supported.

In simple terms:

• Persuasive evidence makes sense,
• Can be trusted, and
• Clearly supports what the auditor is trying to prove.

For example:

• A bank confirmation received directly from the bank is more persuasive than a verbal explanation from management.
• Physical inspection of assets is more persuasive than relying only on accounting records.

So, when we say audit evidence is persuasive, we mean it is credible, relevant, and sufficient enough to justify the auditor’s opinion.

Based on your Audit Planning 3B notes and professional standards, the quality of audit evidence is assessed using four key attributes:

1. Sufficiency

Sufficiency relates to the quantity of audit evidence obtained.

• It considers whether enough evidence has been gathered to achieve the audit objective.

Sufficiency is a matter of professional judgment, influenced by:

• The level of audit risk
• The materiality of the item
• The quality of the evidence obtained

Higher audit risk generally requires more evidence 

2. Reliability

Reliability refers to the degree to which audit evidence can be trusted.

Audit evidence is more reliable when:

• Obtained directly by the auditor
• Obtained from independent external sources
• Supported by effective internal controls
• Documented rather than verbal

More reliable evidence is more persuasive 

3. Relevance

Relevance relates to the appropriateness of audit evidence in addressing a specific audit objective or assertion.

• Evidence must directly relate to what the auditor is testing
• Evidence collected should support valid conclusions and opinions

Irrelevant evidence, even if reliable, does not strengthen the audit conclusion 

4. Usefulness

Usefulness refers to whether the evidence helps the auditor achieve audit objectives.

• Evidence must be timely and still relevant
• It is closely linked to sufficiency, reliability, and relevance

Outdated or irrelevant information reduces audit effectiveness 

Summary

Audit evidence is considered persuasive when it is:

Sufficient + Reliable + Relevant + Useful

The higher the persuasiveness of audit evidence, the stronger the basis for the auditor’s professional judgment and audit opinion.