What are the factors that affect the reliability of evidence?

Explain about the factors that influence the reliability of Audit Evidence. Answer: The reliability of information to be used as audit evidence is influenced its source, nature, and the circumstances under which it is obtained, including the controls over its preparation and maintenance.

What are the six characteristics of reliable audit evidence?

Relevance – must pertain to the audit objective being tested. Effectiveness of client internal controls – good internal controls can mean better information. Auditor direct knowledge – auditor determinations are stronger that client comments. Qualifications – individual is a qualified source.

What are the factors that affect the reliability of sufficiency and appropriateness of audit evidence?

The next factor in determining the appropriateness of audit evidence is its reliability. The reliability of audit evidence depends on its source, nature, and the circumstances in which auditors obtain it.

What are the 8 types of audit evidence?

What Are the Types of Audit Evidence?
  • Physical examination. …
  • Confirmations. …
  • Documentary evidence. …
  • Analytical procedures. …
  • Oral evidence. …
  • Accounting system. …
  • Reperformance. …
  • Observatory evidence.

What are the elements of audit evidence?

Audit evidence consists of both information that supports and corroborates management’s assertions regarding the financial statements or internal control over financial reporting and information that contradicts such assertions.

What is reliability factor in audit?

The reliability factor quantifies the auditor’s desired risk of incorrect acceptance based on the number of overstatement misstatements.

What is reliability in audit?

Reliability audits are a fact finding exercises similar to financial and quality audits to ferret out weaknesses for corrective action. … When: Detailed annual audits should occur annually with a follow-up on the annual audits to occur six month later to insure that corrective action has been implemented.

What are the factors affecting sufficiency of audit evidence?

The auditor’s judgment as to what is sufficient appropriate audit evidence is influence by such factors: Auditor’s assessment of the nature and the level of inherent risk at the both FS level and the account balance or class of transactions level.

What is reliability in mechanical engineering?

Reliability engineering is a sub-discipline of systems engineering that emphasizes the ability of equipment to function without failure. Reliability describes the ability of a system or component to function under stated conditions for a specified period of time.

What is tainting factor?

The tainting factor is the factor that commits errors in the auditing due to non-sampling factors. Tainting factor can be calculated by dividing the difference between the book value or audit value with the book value of the sample, so it cannot be termed as sampling errors.

What is reliability factor of a power plant?

The reliability factor (RF) is defined according to ISO3977-9 as “probability that a unit, major equipment, or component will not be in a forced outage condition at a point in time, i.e., the complement of the ratio of forced outage time (FOH) to total time (PH).”

What are the 4 components of reliability?

There are four elements to the reliability definition: 1) Function, 2) Probability of success, 3) Duration, and, 4) Environment. Maintainability is related to reliability, as when a product or system fails, there may be a process to restore the product or system to operating condition.

What is a reliability factor?

In structure analysis using an X-ray beam or an electron beam, Reliability factor (R-factor) is an index that expresses the degree of reliability for the structure obtained from an experimental structure analysis result.

What are the four stages of reliability testing?

What are the four stages of reliability testing? Identify operational profile; Prepare test data set; Apply tests to system and Compute observed reliability.

What are the major characteristics of reliability?

The basic reliability characteristics are explained: time to failure, probability of failure and of failure-free operation, repairable and unrepairable objects. Mean time to repair and between repairs, coefficient of availability and unavailability, failure rate. Examples for better understanding are included.

What are the types of reliability?

There are two types of reliability – internal and external reliability.
  • Internal reliability assesses the consistency of results across items within a test.
  • External reliability refers to the extent to which a measure varies from one use to another.

What are the considerations to maintain reliability?

Figure 1 shows the four key elements to reliability: function, probability of success, duration and environment.

What are the 3 aspects of reliability?

Reliability refers to the consistency of a measure. Psychologists consider three types of consistency: over time (test-retest reliability), across items (internal consistency), and across different researchers (inter-rater reliability).

What is level of reliability?

A measure is said to have a high reliability if it produces similar results under consistent conditions: “It is the characteristic of a set of test scores that relates to the amount of random error from the measurement process that might be embedded in the scores.

What is reliable accounting?

Accounting reliability refers to whether financial information can be verified and used consistently by investors and creditors with the same results. Basically, reliability refers to the trustworthiness of the financial statements.

What are the different ways to establish test reliability?

There are several methods for computing test reliability including test-retest reliability, parallel forms reliability, decision consistency, internal consistency, and interrater reliability. For many criterion-referenced tests decision consistency is often an appropriate choice.