[The following paragraph was effective for audits of fiscal periods ending after June 15, 1992. It was amended, effective for audits of fiscal years beginning on or after December 15, 2010. See PCAOB Release No. 2010-004.

Return to the current version.]


For the evidence obtained to be competent, it must be reliable and relevant. Factors affecting the reliability of confirmations are discussed in paragraphs .16 through .27. The relevance of evidence depends on its relationship to the financial statement assertion being addressed. Section 326 classifies financial statement assertions into five categories:

  1. Existence or occurrence
  2. Completeness
  3. Rights and obligations
  4. Valuation or allocation
  5. Presentation and disclosure