Sufficiency - sources of evidence, Auditing

Sufficiency - Sources of evidence

The audit evidence should in total enable the auditor to form an opinion on the financial statements.  Sufficiency is a measure of evidence obtained of the quantity.  How much evidence to obtain, what source to use, and the form the evidence should take is an issue left to the auditor to exercise his judgment in the light of the opinion called for under the terms of his engagement.  Of crucial importance however, he will be influenced by the materiality of the matter to be examined, the reliability and relevance of evidence available from each source and the cost and time involved in obtaining it. 

Quite frequently when the auditor obtains evidence from some sources that put when together gives him the necessary assurance.  Factors that affect sufficiency are usually dictated by the degree of risk of misstatement.  The risk itself is affected by the nature of the item, the adequacy of internal control, the nature of the business carried on by the entity, situations which may exact an unusual influence on management, the financial position of the entity, the materiality of the item in relation to the financial statements taken as a whole, the auditor's experience as to the reliability of the management staff of the enterprise and its records, the results of auditing procedures including fraud or error which may have been found and the type of information available.

Posted Date: 1/24/2013 7:20:22 AM | Location : United States

Related Discussions:- Sufficiency - sources of evidence, Assignment Help, Ask Question on Sufficiency - sources of evidence, Get Answer, Expert's Help, Sufficiency - sources of evidence Discussions

Write discussion on Sufficiency - sources of evidence
Your posts are moderated
Related Questions
Necessity of Transactions with Related Parties Transactions along with related parties are essential for several reasons: (a) Several financial scandals including related p

Concept of Audit Evidence The auditing is an evidence gathering exercise.  It is an exercise continued out to confirm the assertions made through the management in carrying ou

Stock Taking - Audit Process The procedures for carrying out physical stock taking vary in detail according to the circumstances and size of the business and the life of its

what is the impact of judgemental sampling on the quality of a financial report

Write a paper (may be real or fictional) involving Accounting and business moral dilemmas. The paper should be 13 pages (double spaced) in accordance with APA guidelines. more des

Questionable Payments In some countries, business is often gained by bribing ministers or public officials or officers of companies or firms with whom one wishes to do business

Pension Funds - Specialized Audit Situation Pension funds are set up through companies or another organization: (a)  To retired employees to administer the pension payable


Audit of Current Assets Verification of Work and Stocks in Progress Authoritative documents: IAS 2/ISA 500/501 IAS 1 Preparation of financial statements requires inv

Audit of Holding Companies and Group Accounts Authoritative documents are as: The Companies Act Cap 486 IAS 27 IAS 28 IAS 31 IFRS 3 ISA 600 r