CA Final · Advanced Auditing, Assurance and Professional Ethics · Audit Evidence

For the audit of Sahyadri Auto Components Ltd, a junior member proposes to collect a large volume of photocopied internal vouchers to make up for the lack of any independent evidence on a high-risk balance, saying that a larger quantity will cure the weakness. Which statement is correct under SA 500?

The proposal is wrong. Sufficiency measures the quantity of evidence and appropriateness its quality. Although higher risk requires more evidence, obtaining more evidence may not compensate for poor quality, so piling up weak internal vouchers does not replace reliable independent evidence on a high-risk balance.

1. ACorrect, because sufficiency means quantity, and enough quantity will always make evidence appropriate
2. BIncorrect, because sufficiency measures quantity, appropriateness relates to quality, and obtaining more evidence may not compensate for its poor qualityCorrect
3. CIncorrect, because the higher the assessed risk, the less evidence is required
4. DCorrect, because the quality of evidence has no bearing on the quantity needed