When the auditor has sufficient competent evidence for each assertion in a material account balance or transaction class, the auditor has completed that portion of the audit and moves on to the next task.

Question

Quizplus · Accepted Answer

When the auditor has obtained sufficient appropriate audit evidence regarding the risks of material misstatement for each relevant assertion in an account balance or transaction class, they have completed their evaluation of that area and can proceed to the next phase of the audit. This is because the auditor's primary goal is to assess the risk of material misstatement in the financial statements and provide an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.

When the Auditor Has Sufficient Competent Evidence for Each Assertion