CMA Intermediate · Corporate Accounting and Auditing · Audit Engagement, Audit Program, Audit Documentation and Audit Evidence
Under SA 500, the term 'sufficiency' of audit evidence refers to which of the following?
Sufficiency is the measure of the quantity of audit evidence. Quality is dealt with by appropriateness, which covers relevance and reliability. The two are interrelated, but sufficiency concerns only how much evidence the auditor has obtained.
- AThe measure of the quantity of audit evidenceCorrect
- BThe measure of the quality of audit evidence
- CThe relevance of the evidence to an assertion
- DThe reliability of the source of the evidence
Explanation
SA 500 states that sufficiency is the measure of the quantity of audit evidence. Appropriateness is the measure of quality, covering relevance and reliability. The options on relevance and reliability describe appropriateness, not sufficiency.
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