What is a measure of quantity of audit evidence?

What is a measure of quantity of audit evidence?

06 Sufficiency is the measure of the quantity of audit evidence. Appropri- ateness is the measure of the quality of audit evidence, that is, its relevance and its reliability in providing support for, or detecting misstatements in, the classes of transactions, account balances, and disclosures and related assertions.

How do auditors decide how much audit evidence?

They must consider evidence gathered by both the defence and the prosecution and then, based upon the evidence presented, reach a conclusion. Similarly, in order for the auditor’s opinion to be considered trustworthy it must be based upon more than simple judgement and gut feeling.

What are the factors responsible to audit evidence?

The sufficiency of audit evidence relates to its quantity while its appropriateness relates to its quality. The appropriateness of audit evidence further depends on two factors, relevance, and reliability.

Which statement is correct regarding the sufficiency and appropriateness of audit evidence?

Which statement is correct regarding the sufficiency and appropriateness of audit evidence? a. Sufficiency is the measure of the quality of audit evidence. transactions, account balances, and disclosures and related assertions.

What is appropriate audit evidence?

Appropriateness is the measure of the quality of audit evidence, i.e., its relevance and reliability. To be appropriate, audit evidence must be both relevant and reliable in providing support for the conclusions on which the auditor’s opinion is based.

Which of the following is generally true about the sufficiency of audit evidence?

Which of the following is generally true about the sufficiency of audit evidence? The amount of evidence that is sufficient varies directly with the acceptable risk of material misstatement.

Which of the following types of audit evidence is the most reliable?

(1) Information obtained indirectly from outside sources is the most reliable audit evidence.

Which of the following factors is the most important in determining the appropriateness of audit evidence?

Sufficiency refers to quantity of audit evidence and appropriateness refers to quality of audit evidence. As a result, the reliability and relevance of audit evidence plays a very important role in determining the appropriateness of audit evidence.

What is normally the most reliable source of audit evidence?

One of the most critical factors influencing the reliability of Audit evidence is the form in which it is recorded. If it is recorded in documentary form through the medium of paper or electronics in a legal format, it is considered more reliable.

How are sufficiency appropriateness related?

The appropriateness of audit evidence refers to its relevance and reliability. The sufficiency of evidence is a measure of evidence quality.

What is meant by sufficient appropriate audit evidence explain with example?

In the audit context, the “sufficient” usually refers to the quantity while the “appropriate” usually refers to the quality. In this case, sufficient appropriate audit evidence means that auditors need to obtain a number of audit evidence and the quality of such evidence should meet the acceptable auditing standards.

What is audit evidence?

Audit evidence consists of both information that supports and corroborates management’s assertions regarding the financial statements or internal control over financial reporting and information that contradicts such assertions.

What is appropriateness of audit evidence?

.06 Appropriateness is the measure of the quality of audit evidence, i.e., its relevance and reliability. To be appropriate, audit evidence must be both relevant and reliable in providing support for the conclusions on which the auditor’s opinion is based.

What is the measure of the quantity of audit evidence?

.05 Sufficiency is the measure of the quantity of audit evidence. The quantity of audit evidence needed is affected by the following: Risk of material misstatement (in the audit of financial statements) or the risk associated with the control (in the audit of internal control over financial reporting).

What influences the number of audit evidence that auditors need?

Additionally, the quality of audit evidence also influences the number of audit evidence that auditors need to obtain. Likewise, if the evidence that auditors obtained are of high quality, they may need less evidence to support their opinion.

What is the definition of audit evidence?

.02 Audit evidence is all the information, whether obtained from audit procedures or other sources, that is used by the auditor in arriving at the conclusions on which the auditor’s opinion is based.