The auditor uses professional judgment to determine whether sufficient appropriate audit evidence has been obtained to reduce audit risk to an acceptable low level.The audit evidence might come from
A)internal control evidence
B)substantive tests of controls
C)a combination of internal control evidence and substantive evidence
D)a combination of substantive tests and analytical procedures

Question

Quizplus · Accepted Answer

The auditor should use both internal control evidence and substantive evidence to gather sufficient appropriate audit evidence. This helps to test both the design and effectiveness of internal controls, as well as obtain substantive evidence about the accuracy and completeness of transactions and balances. Substantive tests of controls alone may not provide enough evidence to assess whether internal controls are operating effectively, and relying solely on substantive tests may not identify potential errors that could be prevented by effective internal controls. Additionally, a combination of internal control evidence and substantive evidence allows the auditor to evaluate the risk of material misstatement at both the account and assertion level.

The Auditor Uses Professional Judgment to Determine Whether Sufficient Appropriate