All 18 Audit Evidence & Procedures questions
More in Audit Evidence & Procedures
What is audit evidence? What are the main types of audit procedures? What is vouching and what is tracing? Why is inquiry alone usually insufficient audit evidence? What factors affect the reliability of audit evidence? What is the difference between tests of controls and substantive procedures? What is external confirmation and when is it used? What is the difference between a test of details and a substantive analytical procedure? What are subsequent events and how does the auditor address them? What is a management representation letter and what is its purpose?
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What is the difference between sufficiency and appropriateness of evidence?

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Answer

Sufficiency is the measure of the quantity of evidence—affected by assessed risk and the quality of evidence (higher risk or lower quality needs more). Appropriateness is the measure of quality: relevance (does it address the assertion?) and reliability (can it be trusted, based on source and nature). Both are needed; more of poor evidence can't fully compensate for low quality.
Real-world example The auditor gathers enough confirmations (sufficiency) from independent banks (appropriateness) to support the cash assertion.

Common follow-ups: Can quantity compensate for poor quality? | What drives reliability?

Audit Sampling Audit Risk & Materiality Audit Evidence & Procedures
All 18 Audit Evidence & Procedures questions