Question 1 (20 marks)

The statements that follow are with regard to evidence that is sufficient and appropriate. As a future auditor, you are required to indicate if you agree with each statement and provide reasons for your decisions:

a) An auditor can only properly measure the appropriateness and sufficiency of audit evidence that will be used when expressing opinions are by utilizing the statistical sampling method only when they are gathering evidence.

b) The conduction of an audit in prior years for an entity will not have any influence when the auditor is determining if the evidence gathered is sufficient and appropriate for the current audit.

c) The level of professional skepticism that the auditor possesses is a factor that has an influence on the appropriateness and sufficiency of audit evidence.

d) When the auditor is making a decision on whether or not sufficient and appropriate evidence has been obtained they will first need to make considerations regarding the sufficiency of the evidence gathered.