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In accounting practices, vendor-specific objective evidence (VSOE) is a method of revenue recognition allowed by US GAAP that enables companies to recognize revenue on specific items on a multi-item sale based on evidence specific to a company that the product has been delivered.
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However, under Federal Rule of Evidence 801 and the minority of U.S. jurisdictions that have adopted this rule, a prior inconsistent statement may be introduced as evidence of the truth of the statement itself if the prior statement was given in live testimony and under oath as part of a formal hearing, proceeding, trial, or deposition. [2]
First adopted in 1975, the Federal Rules of Evidence codify the evidence law that applies in United States federal courts. [1] In addition, many states in the United States have either adopted the Federal Rules of Evidence, with or without local variations, or have revised their own evidence rules or codes to at least partially follow the federal rules.
Audit evidence is sufficient when there is an acceptable amount of evidence found. This changes based on the risk of material misstatement and the quality of evidence that was found. The higher the risk that the financial statements are materially misstated, the more evidence an auditor should collect.
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In software development, functional testing is a form of software system testing that verifies whether software matches its design. Generally, functional testing is black-box meaning the internal program structure is ignored (unlike for white-box testing). [1] Functional testing can evaluate compliance to functional requirements. [2]