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CMA Intermediate · Corporate Accounting and Auditing · Brief Introduction to Auditing Standards

In discussing audit evidence, SA 200 describes 'sufficiency' of audit evidence as the measure of which of the following?

Sufficiency is the measure of the quantity of audit evidence. Appropriateness is the separate measure of quality, covering relevance and reliability. The two are interrelated, but sufficiency concerns only how much evidence the auditor has gathered to support the opinion.

  1. AThe quality of audit evidence, being its relevance and reliability
  2. BThe quantity of audit evidenceCorrect
  3. CThe cost incurred by the auditor in collecting evidence
  4. DThe time taken to perform audit procedures

Explanation

SA 200 states that sufficiency is the measure of the quantity of audit evidence. Appropriateness, not sufficiency, is the measure of quality, covering relevance and reliability. The first option therefore describes appropriateness.

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