Which of the following is generally true about the sufficiency of audit evidence?
A)The amount of evidence that is sufficient varies inversely with the acceptable risk of material misstatement.
B)The amount of evidence concerning a particular account varies inversely with the materiality of the account.
C)The amount of evidence concerning a particular account varies inversely with the inherent risk of the account.
D)When evidence is appropriate with respect to an account it is also sufficient.

Question

Quizplus · Accepted Answer

The sufficiency of audit evidence varies inversely with the acceptable risk of material misstatement. If the auditor believes there is a high risk of material misstatement, then they should obtain more evidence to reduce that risk. Conversely, if the risk is low, then less evidence may be sufficient. Factors such as materiality and inherent risk may also impact the amount of evidence needed, but they are not the primary driving force behind sufficiency.

Which of the Following Is Generally True About the Sufficiency