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    The persuasiveness of audit evidence depends on two factors: appropriateness and sufficiency. Appropriateness means the quality of evidence—whether it is relevant and reliable for meeting audit objectives. Sufficiency means the quantity of evidence, such as having a proper sample size. Appropriate and sufficient evidence together support the auditor's opinion.

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    The persuasiveness of audit evidence depends on two factors: appropriateness and sufficiency. Appropriateness means the quality of evidence—whether it is relevant and reliable for meeting audit objectives. Sufficiency means the quantity of evidence, such as having a proper sample size. Appropriate and sufficient evidence together support the auditor's opinion.

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    Persuasiveness of Evidence

    Uploaded by

    samuel debebe
    The persuasiveness of audit evidence depends on two factors: appropriateness and sufficiency. Appropriateness means the quality of evidence—whether it is relevant and reliable for meeting audit objectives. Sufficiency means the quantity of evidence, such as having a proper sample size. Appropriate and sufficient evidence together support the auditor's opinion.

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    Persuasiveness of evidence—the degree to which the auditor is convinced that the

    evidence supports the audit opinion

     The two determinants of persuasiveness are the appropriateness and sufficiency of the
    evidence
     Appropriateness of evidence—a measure of the quality of evidence; appropriate evidence is relevant and reliable in
    meeting audit objectives for classes of transactions, account balances, and related disclosures.
     Sufficiency of evidence—the quantity of evidence; proper sample size

    Choose the best response.


    a. Which of the following types of documentary evidence should the auditor consider to
    be the most reliable?
    (1) A sales invoice issued by the client and supported by a delivery receipt from an
    outside trucker.
    (2) Confirmation of an account payable balance mailed by and returned directly to
    the auditor.
    (3) A check, issued by the company and bearing the payee’s endorsement, that is
    included with the bank statements mailed directly to the auditor.
    (4) An audit schedule prepared by the client’s controller and reviewed by the client’s
    treasurer.
    b. Which of the following statements concerning audit evidence is true?
    (1) To be appropriate, audit evidence should be either persuasive or relevant, but
    need not be reliable.
    (2) The measure of the quantity and quality of audit evidence lies in the auditor’s
    judgment.
    (3) The difficulty and expense of obtaining audit evidence concerning an account
    balance is a valid basis for omitting the test.
    (4) A client’s accounting records can be sufficient audit evidence to support the
    financial statements.

    c. Audit evidence can come in different forms with different degrees of persuasiveness.
    Which of the following is the least persuasive type of evidence?
    (1) Vendor’s invoice
    (2) Bank statement obtained from the client
    (3) Computations made by the auditor
    (4) Prenumbered sales invoices
    d. Which of the following presumptions is correct about the reliability of audit evidence?
    (1) Information obtained indirectly from outside sources is the most reliable audit
    evidence.
    (2) To be reliable, audit evidence should be convincing rather than merely persuasive.
    (3) Reliability of audit evidence refers to the amount of corroborative evidence obtained.
    (4) Effective internal control provides more assurance about the reliability of audit
    evidence.

    The following questions concern audit documentation. Choose


    the best response.
    a. Which of the following is not a primary purpose of audit documentation?
    (1) To coordinate the audit.
    (2) To assist in preparation of the audit report.
    (3) To support the financial statements.
    (4) To provide evidence of the audit work performed.
    b. During an audit engagement, pertinent data are compiled and included in the audit
    files. The audit files primarily are considered to be
    (1) a client-owned record of conclusions reached by the auditors who performed the
    engagement.
    (2) evidence supporting financial statements.
    (3) support for the auditor’s representations as to compliance with auditing standards.
    (4) a record to be used as a basis for the following year’s engagement.

    c. Although the quantity, type, and content of audit documentation will vary with the
    circumstances, audit documentation generally will include the
    (1) copies of those client records examined by the auditor during the course of the
    engagement.
    (2) evaluation of the efficiency and competence of the audit staff assistants by the
    partner responsible for the audit.
    (3) auditor’s comments concerning the efficiency and competence of client manage -
    ment personnel.
    (4) auditing procedures followed and the testing performed in obtaining audit
    evidence.
    d. The permanent file of an auditor’s working papers most likely would include copies of
    the
    (1) lead schedule.
    (2) attorney’s letters.
    (3) bank statements.
    (4) debt agreements.

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