Question

Internal sources of audit evidence for an entity includes the following EXCEPT_________.

• A. Associated companies of the entity
• B. Accounting systems, records and documents
• C. Non-financial data and records
• D. Management representation and discussion

Answer 1

The correct option is A Associated companies of the entity

Internal Audit evidence refers to the audit evidence obtained within the entity. Associate company is external to the entity and hence, it constitutes external audit evidence.