Exam AUD topic 1 question 742 discussion

Actual exam question from AICPA's AUD

Question #: 742
Topic #: 1

[All AUD Questions]

Which of the following statements concerning audit evidence is correct?

A. To be appropriate, audit evidence should be either reliable or relevant, but need not be both.
B. The measure of the sufficiency of audit evidence lies in the auditor's judgment.
C. The difficulty and expense of obtaining audit evidence concerning an account balance is always a valid basis for omitting the test.
D. A client's accounting data can be sufficient audit evidence to support the financial statements.

Show Suggested Answer

Suggested Answer: B 🗳️
Choice "B" is correct. The measure of the sufficiency of audit evidence lies in the auditor's judgment.
Choice "A" is incorrect. To be appropriate, audit evidence should be both reliable and relevant.
Choice "C" is incorrect. The difficulty and expense of obtaining audit evidence concerning an account balance is not a valid basis for omitting the test when there is no acceptable alternative procedure.
Choice "D" is incorrect. By itself, a client's accounting data cannot be sufficient audit evidence to support the financial statements. Sufficient, appropriate external evidence must also be obtained to corroborate management's assertions.

by gemazyni at April 5, 2025, 5:04 p.m.

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