Which of the following is a typical audit evidence source when testing revenue recognition?

• A. Documentary evidence, invoices, contracts, shipping documents
• B. Management's personal notes
• C. Social media posts
• D. Random guesses by staff

Answer: (A)

Documentary evidence such as invoices, contracts, and shipping documents is the typical audit evidence source when testing revenue recognition because it provides an objective, verifiable trail of the sales transaction. Invoices confirm the amount billed and the customer, contracts establish the terms of the sale, and shipping documents link the sale to the actual delivery, helping establish that revenue was earned and recognized in the correct period. This type of evidence supports key audit assertions like existence, accuracy, and cut-off, and it reduces reliance on subjective notes or informal sources. By contrast, management’s personal notes, social media posts, or guesses by staff lack the independence and reliability needed to substantiate revenue recognition.