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ISA 500 requires that ‘the auditor should obtain sufficient audit evidence to be able to draw reasonable conclusions on which to base the audit opinion.’
What do we mean by:
a) Sufficiency
b) Appropriate
-Sufficient means that there needs to be enough evidence. What is enough is a matter of professional judgment.
Appropriate break down into:
a) Relevance.
Relevance of audit evidence should be considered in relation to the overall audit objective of forming an opinion and reporting on financial statements. It therefore refers to the ability of the evidence to assist the auditor in testing management assertions.
b) Reliability
Reliability of audit evidence refers to the credibility of that evidence the credibility is influenced
by its source and its nature
Wilfykil answered the question on April 11, 2019 at 12:57
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