What is the characteristic of secondary evidence in an audit?

The characteristic of secondary evidence in an audit is that it generally requires additional evidence to support conclusions. Secondary evidence refers to information that is not primary or direct evidence concerning a fact but is instead derived from other sources. This type of evidence may include reports, databases, or documentation that was not created firsthand.

Because secondary evidence is often based on interpretations or compilations of primary data, auditors must approach it with caution. It usually requires further corroboration through additional, more direct evidence to establish a reliable basis for conclusions. This need for supplemental verification is crucial, as it ensures the accuracy and integrity of the findings derived from secondary sources.

In contrast, conclusive proof of a fact typically necessitates primary evidence. Evidence gathered predominantly from internal sources is not a defining trait of secondary evidence, as this type can also originate from external records. Furthermore, the assertion that secondary evidence provides direct support without the need for further substantiation overlooks the inherent limitations and requirements of this type of evidence.