Relevance means the relationship of the evidence with the audit procedure and the assertion being checked.

A given set of audit procedures may provide audit evidence that is relevant to certain assertions, but not others.

For example, confirmation of balance from a customer is a relevant evidence as regards existence of receivable, but it may not be relevant as regards the collectability of the balance due from customer.

Also, physical observation of inventories is relevant evidence relating to existence, but is not appropriate evidence to ensure that the entity owns the inventories.

On the other hand, audit evidence from different sources or of a different nature may often be relevant to the same assertion. For example, Checking the terms of the agreement and confirming the same from the third party.

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