When is evidential matter, generally, considered sufficient?
Correct answer: B. When it is enough to provide a basis for giving reasonable assurance regarding truthfulness
- A. When it constitutes entire population
- B. When it is enough to provide a basis for giving reasonable assurance regarding truthfulness
- C. When it is objective and relevant
- D. When auditor collects and evaluates it independently
Explanation
Evidence is sufficient when its quantity and quality give the auditor a reasonable basis for assurance about the truthfulness of the financial statements. It need not cover the entire population or be absolutely conclusive.
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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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