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
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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
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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.

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Chapter 6 Solutions

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

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