Auditing: A Risk Based-Approach to Conducting a Quality Audit
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN: 9781305080577
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: South-Western College Pub
Question
Book Icon
Chapter 6, Problem 1TFQ
To determine

Introduction: Audit evidence is the proof that an auditor tries to seek from an organization in order to claim that the assertions related to financial transactions are correct.

Whether the given statement is true.

Expert Solution & Answer
Check Mark

Answer to Problem 1TFQ

The given statement is true.

Explanation of Solution

The quality and relevance of an audit evidence is measured under appropriateness of an audit evidence. The audit evidence is said to be relevant when it validates the assertions claims by the management. The auditor checks whether the evidence is convincing, if the evidence is found convincing then it is said to a reliable audit evidence.

Thus, the appropriateness of an audit evidence measures both relevance and reliability.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Explain what is meant by the term acceptable audit risk. Whatis its relevance to evidence accumulation?
What is the primary constraint on audit evidence?
How does audit risk relate to audit evidence?

Chapter 6 Solutions

Auditing: A Risk Based-Approach to Conducting a Quality Audit

Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Text book image
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub