Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 53

Performance Principle: Evidence. Generally accepted auditing standards (the performance principle) require auditors to gather sufficient appropriate evidence on which to base an opinion.
Required:
a. Briefly define the characteristics "sufficient" and "appropriate" as they relate to audit evidence.
b. What are relevance and reliability (as they relate to audit evidence)? How do these concepts relate to the auditors' requirement to gather sufficient appropriate evidence?
c. How does the source of evidence affect its reliability?
d. How does the effectiveness of the entity's internal control affect the sufficiency and appropriateness of evidence gathered by auditors?