1.2 - Sufficient Appropriate Evidence

Question 1

What does ISA (UK) 500 Audit Evidence require?

Answer 1

Requires auditors to ‘obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditor’s opinion’

Question 2

Which tests for audit evidence require sufficient appropriate evidence?

Answer 2

Both tests of controls and substantive testing

Question 3

Define sufficiency

Answer 3

The measure of the quantity of audit evidence

Question 4

Define appropriate

Answer 4

The measure of the quality or relevance and reliability of the audit evidence

Question 5

How much evidence is required is based on what?

Answer 5

How much evidence is required will depend on the level of assurance being offered in an engagement

Question 6

What is the quantity of evidence affected by?

Answer 6

The level of risk in the area being audited and the quality of the evidence obtained - high quality evidence may mean the auditor needs less than if it were poor