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, i.e., 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 (Pty) Ltd, an electronics manufacturer:

1. Extracted a sample of items from the inventory sheets and performed test counts at the annual inventory count.

2. Reviewed the report of an electronics expert who was engaged (by the audit firm) to value work in progress at year end.

3. Attended a wage count.

4. Discussed the allowance for bad debts with the credit controller

5. Reperformed the casts and extensions of the payroll for three different weeks

6. Reviewed the client’s debtors age analysis

Required:

1. Outline the factors which the auditor should consider when assessing the quality of audit evidence.