ICAEW ARF · Chapter 7 · Question 1 of 11
In the context of audit evidence, what do the terms 'sufficient' and 'appropriate' refer to?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Sufficient refers to the quantity of evidence, and appropriate refers to its quality (relevance and reliability)
Explanation
Sufficiency is the measure of the quantity of audit evidence, which is affected by risk and by the quality of the evidence. Appropriateness is the measure of quality, meaning its relevance and reliability in supporting the auditor's conclusions. The two are interrelated: higher quality evidence may mean less is needed.
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