Accounting Concepts - 7. Objective Evidence Concept:
This concept means that all accounting entries should be evidenced and supported by business documents, such as invoices, vouchers, etc.
This concept also implies that the evidences (i.e., the business documents supporting the accounting entries) must be completely objective (i.e., must state the facts as they are without bias or fraud), and must be subject to verification by auditors. It is only when the accounting entries are supported by objectively determined evidences, which are subject to verification by auditors, the accounting records will be accepted by various groups of people interested in accounting information with confidence.
This concept means that all accounting entries should be evidenced and supported by business documents, such as invoices, vouchers, etc.
This concept also implies that the evidences (i.e., the business documents supporting the accounting entries) must be completely objective (i.e., must state the facts as they are without bias or fraud), and must be subject to verification by auditors. It is only when the accounting entries are supported by objectively determined evidences, which are subject to verification by auditors, the accounting records will be accepted by various groups of people interested in accounting information with confidence.
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