What does sufficient appropriate audit evidence mean on the CPA exam?
Sufficient appropriate audit evidence. Enough evidence, of the appropriate kind. Sufficiency is quantity, appropriateness is relevance and reliability, and more of unreliable evidence does not fix it.
Defined against AU-C 500.05.
Which CPA exam sections use sufficient appropriate audit evidence?
Sufficient appropriate audit evidence appears in the AUD section of the CPA exam.
Other terms defined against AU-C 500
- audit evidence: Everything the auditor uses to reach a conclusion, including the accounting records and anything corroborating them.
- audit procedures: The specific work performed: inspection, observation, inquiry, confirmation, recalculation, reperformance and analytical procedures.
- competence, capabilities, and objectivity: The three things evaluated before relying on anyone else's work: whether they have the skill, whether they have the resources to apply it, and whether they are free of pressure to reach a particular answer.
Related terms
- audit sampling: Selecting and evaluating less than 100% of a population of audit relevance so the sample is expected to be representative, giving a reasonable basis for conclusions about the whole population.
- report release date: The date the auditor grants the entity permission to use the report.
- written representations: Statements the auditor requires from management to confirm matters or support other evidence.