An example where an auditor might be found to fail to obtain sufficient and appropriate evidence for a sample of expense items being tested would include the auditor failing to determine whether the sample expenses were recorded in the correct period and in the correct general ledger accounts.

Question

Quizplus · Accepted Answer

If the auditor fails to determine whether sample expenses were recorded in the correct period and general ledger accounts, they could miss material misstatements in the financial statements. This would mean that they failed to obtain sufficient and appropriate evidence for the sample, potentially leading to an audit failure or inaccuracies in the financial statements.

An Example Where an Auditor Might Be Found to Fail