CA Inter P5 · Chapter 4 · Question 1 of 14
Under SA 500, 'sufficiency' and 'appropriateness' of audit evidence refer respectively to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The quantity of evidence, and its quality in terms of relevance and reliability
Explanation
SA 500 defines sufficiency as the measure of the quantity of audit evidence and appropriateness as the measure of its quality, that is, its relevance and reliability in supporting the auditor's conclusions. More evidence does not compensate for poor quality evidence.
More Audit Evidence MCQs
- Q3The auditor of Oorja Electricals Ltd. selects goods dispatch notes issued in the last week of the year and traces them to sales invoices…
- Q4The auditor selects entries from the purchases account and vouches them to supplier invoices and goods received notes. The primary…
- Q5Management of Tanvi Exports Ltd. refuses to allow the auditor to send a confirmation request to a major customer. Under SA 505, the…
- Q6SA 505 permits negative confirmation requests as the sole substantive procedure for an assertion only when certain conditions are all…
- Q7When inventory is material, SA 501 requires the auditor to attend the physical inventory count, unless impracticable, in order to: