An Empirical Study of the Impact of Audit Evidence Reliability on the Accuracy of Audit Opinions

Posted: Apr 12, 2021

• Alana Walsh
• Carter Logan
• Frederick Lane

Abstract

The fundamental purpose of financial statement auditing is to provide reasonable assurance that financial statements are free from material misstatement, whether due to fraud or error. Central to this assurance function is the collection and evaluation of audit evidence, which forms the basis for the auditor's opinion. While auditing standards emphasize the importance of sufficient appropriate audit evidence, the specific relationship between evidence reliability characteristics and the ultimate accuracy of audit opinions remains inadequately explored in empirical literature. This research addresses this critical gap by developing a comprehensive framework for assessing audit evidence reliability and examining its direct impact on audit opinion accuracy.