Audit evidence encompasses the facts and documentation gathered by auditors to substantiate their conclusions during an audit process. This evidence is crucial to forming an audit opinion and confirms that financial statements accurately reflect an organization's financial performance and position. Examples of audit evidence include invoices, bank statements, contracts, and physical inspections of assets.

For instance, during a financial audit, the auditor may request access to the general ledger, balance sheet, and journal entries. They may also interview members of the internal finance team to understand the processes and ensure compliance with accounting standards. These activities and their outputs result in different forms of audit evidence.

Audit evidence must meet criteria such as relevance and reliability. Relevance ensures the evidence directly relates to the audit assertion it is intended to support, while reliability concerns the credibility and accuracy of the evidence source. Well-prepared month-end and quarter-end schedules often serve as strong audit evidence, ultimately contributing to an efficient and effective auditing process.