Question

The quantity of evidence that an auditor will gather:

a) depends on the size of the audit team.
b) varies with the assessed risk of material misstatement.
c) is the same for most audits because it has to be appropriate.
d) is the same for clients in the same industry.

Answer 1

The quantity of evidence that an auditor will gather varies with the assessed risk of material misstatement.

Step-by-step explanation:

The quantity of evidence that an auditor will gather varies with the assessed risk of material misstatement.

For example, if the auditor identifies a higher risk of material misstatement, they will need to gather more extensive and detailed evidence to mitigate that risk.

On the other hand, if the auditor determines a lower risk of material misstatement, they may gather less evidence, but it will still be sufficient to provide reasonable assurance.