'The Auditor Shall Obtain Sufficient Appropriate Audit Evidence to Be

Question

Examlex · Accepted Answer

The Answer is Sufficiency:
Sufficiency relates to the quantity of audit evidence.Factors that may affect the auditor's judgement of sufficiency include:

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Materiality and risk: in general, more evidence is needed for accounts that are material to the financial statements and for accounts that have a higher likelihood (risk) of being misstated

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Economic factors: sufficient evidence must be obtained within a reasonable time and at a reasonable cost.

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Population size and characteristics: the size of accounting populations underlying many financial statements makes sampling a practical necessity in gathering evidence.
Appropriateness:
Appropriateness refers to the quality of audit evidence.For evidence to be appropriate it must be relevant and reliable.

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Relevance: means that evidence must be sufficient with respect to each of the auditor's objectives.

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Reliability: the reliability of evidence is influenced by factors such as the source and nature of the information, and its timeliness and objectivity.

'The Auditor Shall Obtain Sufficient Appropriate Audit Evidence to Be

Definitions: