AUD 3.5 - Sufficient Appropriate Evidence

Question 1

All the information the auditor uses to arrive at the conclusions on which the audit opinion is based:

Answer 1

Audit evidence

Question 2

Consist of records of initial entries and any supporting records. For example (checks, records of fund transfers, invoices, ledgers, journal entries, etc.)

Answer 2

Accounting records

Question 3

Includes minutes of meetings, confirmations, industry analysts reports, data about competitions, and information obtained through observation, inquiry, and inspection

Answer 3

Corroborating evidence

Question 4

What prohibits the examination of 100% of the accounting data

Answer 4

Cost-benefit considerations

Question 5

Te auditors decision regarding the sufficiency of evidence is influenced by:

Answer 5

The risk of material misstatement
The quality of audit evidence

Question 6

Any evidence obtained directly by the auditor provides more persuasive evidence than obtained indirectly:

Answer 6

Auditors direct personal knowledge

Question 7

Evidence obtained from independent sources outside the enterprise provides greater assurance of reliability:

Answer 7

External evidence

Question 8

Two types of external evidence:

Answer 8

Sent directly to an independent auditor
Received and held by the client

Question 9

When the auditor receives internal evidence from the client, they should test its:

Answer 9

Accuracy and completion

Question 10

The hierarchy for audit evidence is:

Answer 10

Auditors direct personal knowledge
External evidence
Internal evidence
Oral evidence