CPA Exam Lab
All patterns
Evidence and assertions

The Evidence Hierarchy

The best evidence is external, direct, and auditor-obtained, and quantity cannot fix poor quality.

How the exam words it

The playbook

  1. 1Rank reliability: auditor-obtained and external beats internal, original beats a photocopy, written beats verbal.
  2. 2Sufficiency is quantity, appropriateness is quality, and more weak evidence never substitutes for strong evidence.
  3. 3The file is assembled within 60 days of the report release date, and later additions are documented with who, when, and why.

The trap

Thinking more low-quality evidence compensates for missing high-quality evidence. It does not, and auditor control over the evidence matters.

How the exam varies it

The same pattern, re-skinned along these axes:

Rank reliability versus define sufficiencySource of the evidence: external, internal, or auditor-obtainedEvidence quality versus documentation mechanics

Drill this pattern

8 questions of The Evidence Hierarchy from across the AUD topics. Clear it by getting 5 right with a streak of 3.

Shows up in 1 AUD topic