Which of the following provides the MOST reliable audit evidence on the validity of transactions in a financial application?

Which of the following provides the MOST reliable audit evidence on the validity of transactions in a financial application?
A . Walk-through reviews
B . Substantive testing
C . Compliance testing
D . Design documentation reviews

View Answer

Answer: B

Explanation:

Substantive testing provides the most reliable audit evidence on the validity of transactions in a financial application. Substantive testing is an audit procedure that examines the financial statements and supporting documentation to see if they contain errors or misstatements. Substantive testing can help to verify that the transactions recorded in the financial application are authorized, complete, accurate, and properly classified. Substantive testing can include methods such as vouching, confirmation, analytical procedures, or physical examination.