What type of evidence is referred to as documentary evidence?

Documentary evidence refers to any documentation that is utilized to support information or findings. This can include a wide range of materials, such as contracts, invoices, reports, and other forms of written records that provide factual information. The importance of documentary evidence lies in its ability to serve as a reliable source of information that can be reviewed, verified, and referenced throughout an audit or investigation.

In contrast, evidence obtained from expert testimony relies on the opinions and expertise of individuals, which may not necessarily be recordable in written form or universally accepted without question. Statistical data, while useful, is often generated and analyzed without direct documentation tied to specific events or transactions, and it is generally classified under analytical evidence rather than documentary evidence. Oral statements, although they may provide insights or context, lack the permanence and verifiability that written documents possess and can be subject to misinterpretation or inconsistency. Thus, the most fitting categorization of documentary evidence aligns with documents that are either prepared internally or externally, providing a concrete foundation for analysis and decision-making in financial auditing.