What Is Verbal Memory?

Verbal evidence is audit evidence obtained from oral interviews. The oral statement or reply of relevant personnel within the unit being audited is to be used as evidence. As far as probative power is concerned, oral evidence is the weakest of all audit evidence. A person makes a verbal explanation of something or a problem, but it is difficult to prove it later. There is also the possibility of misunderstanding oral evidence or memory errors. However, the role of oral evidence cannot be ignored. It can provide auditors with various clues and guide auditors to seek other audit evidence that proves to be powerful. Therefore, during the audit process, auditors often spend considerable time discussing various issues with relevant personnel of the audited unit. In some cases, such as explaining some exceptional accounting matters, oral statements are the only source of evidence. The Audit Office of China in the "Trial Level of Audit Work" requires that auditors must have two people present during the interview in order to obtain oral evidence, and that the content of the conversation should be recorded in time and signed by the participants. ^[1]

Oral evidence

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Verbal evidence is audit evidence obtained from oral interviews. The oral statement or reply of relevant personnel within the unit being audited is to be used as evidence. As far as probative power is concerned, oral evidence is the weakest of all audit evidence. A person makes a verbal explanation of something or a problem, but it is difficult to prove it later. There is also the possibility of misunderstanding oral evidence or memory errors. However, the role of oral evidence cannot be ignored. It can provide auditors with various clues and guide auditors to seek other audit evidence that proves to be powerful. Therefore, during the audit process, auditors often spend considerable time discussing various issues with relevant personnel of the audited unit. In some cases, such as explaining some exceptional accounting matters, oral statements are the only source of evidence. The Audit Office of China in the "Trial Level of Audit Work" requires that auditors must have two people present during the interview in order to obtain oral evidence, and that the content of the conversation should be recorded in time and signed by the participants. ^[1]

Verbal evidence refers to the

During the audit process, the CPA often asks relevant personnel about the following matters: the actual situation at the time of the matter being audited; the handling of special matters; the reasons for adopting special accounting policies and methods; the facts of fraud Retrospective investigation; opinions or attitudes on possible matters, etc. Often, oral evidence alone cannot fully prove the truth of the fact, because the person being investigated or asked may intentionally conceal the facts or cause the oral evidence to be inaccurate and incomplete due to ambiguity or omission in memory of past events. Therefore, while obtaining oral evidence, other audit procedures should be implemented to obtain other forms of audit evidence.

Often, the purpose of a certified public accountant in obtaining oral evidence is twofold. First, in order to confirm whether a certain result is consistent with the judgment of the CPA. Second, the purpose of obtaining oral evidence by the CPA is to discover some new important audit trails, which is conducive to further investigation and evidence collection. Regardless of the purpose, the certified public accountant must pay attention to skill when obtaining oral evidence, not to force confessions, and not to intimidate threats, but should explain the principles and requirements, follow the guidance, and make a record of all important oral answers. , Indicate the name, time, place, and background of the person being asked, and if necessary, ask the person to confirm and sign.

Although the oral evidence is less reliable and requires the support and corroboration of other evidence, if the spoken statements made by different people on the same question at the same time are consistent, their reliability is stronger and can be used as an audit conclusion. in accordance with.