Introduction ISA 500 defines Audit Evidenc e as: “Information used by the auditor in arriving at the conclusions on which the auditor’s opinion is based. Audit evidence includes both information contained in the accounting records underlying the financial statements and other information. (See Sufficiency of audit evidence and Appropriateness of audit evidence.)” Evidential matter is necessary to support the assertions in the financial statements. Evidential matter consists of underlying accounting data such as books or journal of original entry and all corroborating information available to the auditor. Underlying evidence for the most part is available to the auditor from within the company. It consists of the accounting data from which the financial statements are prepared, and includes journals, ledgers, computer files, accounting manuals, memoranda, worksheets and spreadsheets supporting items such as cost allocations, computations, and reconciliations. Our Discussion on th