Final answer:
The AICPA does not set quantitative measures for audits but instead emphasizes an auditor's judgment to determine what is sufficient appropriate audit evidence. This approach focuses on the quality of evidence rather than its quantity.
Step-by-step explanation:
The statement regarding the American Institute of Certified Public Accountants (AICPA) pronouncements on auditing is true. The AICPA provides guidelines and standards for auditors, but it does not specify exact quantitative measures, such as a percentage of purchase invoices to be examined. Instead, it relies on the auditor’s professional judgment to determine what constitutes sufficient appropriate audit evidence. The focus of these pronouncements is on the quality of the audit evidence and its relevance and reliability, rather than the quantity alone.
As auditors apply these standards, they use various audit techniques to obtain reasonable assurance that the financial statements are free from material misstatement. These techniques could include sampling, observation, inspection, inquiry, and confirmation, among others. The key is that the evidence obtained must support the auditor’s opinion on the financial statements.