According to International Standard on Auditing (ISA) 500, audit evidence is defined as all the information used by the auditor in arriving at the conclusions on which the auditors opinion is based.

Required

a) Discuss the quality of the following types of audit evidence, giving two examples of each form of evidence:

(i) Evidence originated by auditors. (ii) Evidence created by third parties. (iii) Evidence created by the management of the client. (15 marks)

b) Describe the general considerations which auditors must bear in mind when evaluating audit evidence. (5 marks)