In reporting performance audit findings, why does an auditor evaluate evidence against criteria?
A)To ensure reasonable criteria have been established.
B)To develop conclusions relative to the audit objectives.
C)To develop the audit scope.
D)To determine risk.

Question

Quizplus · Accepted Answer

Evaluating evidence against criteria allows the auditor to develop conclusions relative to the audit objectives. The criteria serve as a benchmark for evaluating the evidence and the auditor can determine whether the audited entity is meeting the established criteria. This helps the auditor in developing an opinion about the audited entity's performance, and whether there are any areas that require improvement.

In Reporting Performance Audit Findings, Why Does an Auditor Evaluate