ASA 500 Requires Auditors to Accumulate Sufficient Appropriate Evidence to Support

question 59

Multiple Choice

ASA 500 requires auditors to accumulate sufficient appropriate evidence to support the opinion issued. Because of the nature of audit evidence, it is:

• A) unlikely the auditor will be completely convinced that the opinion is correct.
• B) likely that the auditor would change his or her mind about the opinion if he or she took the time to gather additional evidence.
• C) unlikely the auditor will arrive at a conclusion.
• D) likely the auditor will be completely convinced that the opinion is correct.

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Definitions:

Risk of Loss

denotes the possibility that an asset or investment's value will decrease, reflecting the chance of losing on an investment or possession.

Contract Voided

A legal declaration that a contract is null and void and, therefore, unenforceable as though it never existed.

Partial Inability

A condition where an individual or entity is limited in some capacity but is not completely incapacitated.

Performance Impracticable

A doctrine under which a party may be released from a contract due to the occurrence of unforeseen events making performance impossible or extremely burdensome.