Question

b. Briefly explain the way in which technology has changed the form and reliability of audit evidence.

Answer 1

Technology has had a significant impact in the form and reliability of audit evidence and has led to improvement in existing auditing procedures as well. Audit requires auditors to obtain sufficient competent evidence to support the audit opinion on the financial statements. With the advancements in technology the form and reliability of audit evidence has been altered but this alteration has been for the good only. Traditional forms of audit evidence and its reliability stands changed due to changes in technology and auditors are now required to perform additional tests to complement their traditional audit procedures. Auditors are also required to exercise a higher degree of professional skepticism with regards to audit evidence and its reliability. This has also enabled auditors to use extensive control testing with their traditional audit procedures. Advancements in technology sometimes lead to a situation in which audit evidence is both persuasive as well as conclusive. Auditors can now consider audit evidence to be 100% reliable in many cases.