Question

Which of the following is generally true about the sufficiency of audit evidence? multiple choice It considers most directly the relevance and the skepticism of the evidence. It is affected by the auditor's assessment of the risks of material misstatement and the quality of the audit evidence obtained. It is affected by the extent of audit evidence but not the nature and timing of audit evidence. Its requirements are met when at least one form of confirming evidence exists.

Answer 1

The correct option among the multiple-choice question is (B) "It is affected by the auditor's assessment of the risks of material misstatement and the quality of the audit evidence obtained."The sufficiency of audit evidence is generally affected by the auditor's assessment of the risks of material misstatement and the quality of the audit evidence obtained. Sufficiency is an important element of audit evidence, which must be sufficient enough for an auditor to make an informed opinion regarding the financial statements.The audit evidence obtained should be relevant, reliable, and sufficient to support an auditor's opinion on financial statements. The sufficiency of audit evidence depends on the nature and complexity of the financial statements and transactions and the auditor's risk assessment. It is the responsibility of the auditor to collect and evaluate sufficient and appropriate audit evidence. Hence, it is affected by the auditor's assessment of the risks of material misstatement and the quality of the audit evidence obtained. Thus, option B is correct.