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Sufficient audit evidence means that a satisfactory amount ( quantity ) of audit evidence has been gathered, appropriate audit evidence means that the evidence is
Sufficient audit evidence means that a satisfactory amount quantity of audit evidence has been
gathered, appropriate audit evidence means that the evidence is reliable and relevant, ie it has
the necessary quality which the auditor requires. The following audit procedures have been
carried out by the audit team on the audit of Futex Ply Ltd an electronics manufacturer:
Extracted a sample of Items from the inventory sheets and performed test counts at the
annual Inventory count.
Reviewed the report of an electronics expert who was engaged by the audit firm to
value work in progress at year end.
Attended a wage count.
Discussed the allowance for bad debts with the credit controller.
Reperformed the casts and extensions of he payroll for three different weeks.
Reviewed the client's debtor's age analytics
Required:
Discuss the factors which the auditor should consider when assessing the quality of
audit evidence
Discuss the reliability of the evidence gathered from each of the above audit
procedures.
State to which assertion each of the above a most relevant.
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