Question

Vendor invoices are considered a highly reliable form of documentary evidence?

1) True
2) False

Answer 1

Vendor invoices are indeed considered highly reliable forms of documentary evidence, particularly in accounting and auditing, because they provide transaction details and are produced by external parties, reducing bias.

Step-by-step explanation:

It is true that vendor invoices are considered a highly reliable form of documentary evidence.

In the context of accounting and auditing, vendor invoices are regarded as credible because they are business records created by external parties, reducing the risk of biases associated with internally generated documents.

Moreover, these invoices provide detailed information on transactions such as the goods or services purchased, quantities, prices, and terms, which can be cross-checked with other documents such as delivery receipts and purchase orders.