Final Review Part III Flashcards
1
Q
Audit Evidence
A
- consist of underlying accounting data
- corroborating evidence
2
Q
Sufficient Audit Evidence
A
- RMM = more risk = more evidence
- quality of audit evidence = low quality = more evidence
3
Q
Appropriate Audit Evidence
A
- reliability: dependent
–> auditor direct knowledge
–> external evidence
–> internal evidence
–> oral evidence - relevance: related to the assertion under consideration
4
Q
Statistical Sampling
A
- measure the sufficiency of the evidence
- design an efficient sample
- quantify sampling risk
5
Q
Inventory
A
- an auditor is not responsible for counting the inventory
- we are observing it