Which type of evidence is generally considered more reliable than internal client documents?

• A. Internal documents
• B. Third-party documentation
• C. Auditor's own work papers
• D. Oral representations

Answer: (B)

Third-party documentation is generally more reliable because it comes from an independent source outside the client, reducing the risk of manipulation or bias that can affect documents prepared by management. External documents—such as bank confirmations, supplier statements, or regulator reports—provide an objective check that supports the assertions in the financial statements. In contrast, internal documents are created and controlled by the client, so they may be influenced or incomplete. The auditor’s own work papers are internal and reflect the auditor’s conclusions, not independent evidence. Oral representations are the least reliable since they are uncorroborated statements that can be inaccurate or misremembered.