According to ISA 500, the strength of audit evidence is determined by which two qualities?
Correct answer: B. Sufficiency & appropriateness
- A. Appropriateness & competence
- B. Sufficiency & appropriateness
- C. Reliability & extensiveness
- D. Objectivity & independence
Explanation
ISA 500 evaluates audit evidence through sufficiency, meaning its quantity, and appropriateness, meaning its relevance and reliability. Both qualities are needed to support a reasonable audit conclusion.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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