Performance Principle: Evidence. Generally accepted auditing standards (the performance principle) require auditors to gather sufficient appropriate evidence on which to basean opinion.Required:a. Briefly define the characteristics “sufficient” and “appropriate” as they relate to auditevidence.b. What are relevance and reliability (as they relate to audit evidence)? How do these concepts relate to the auditors’ requirement to gather sufficient appropriate evidence?c. How does the source of evidence affect its reliability?d. How does the effectiveness of the entity’s internal control affect the sufficiency andappropriateness of evidence gathered by auditors?

Question

Performance Principle: Evidence. Generally accepted auditing standards (the performance principle) require auditors to gather sufficient appropriate evidence on which to base
an opinion.
Required:
a. Briefly define the characteristics “sufficient” and “appropriate” as they relate to audit
evidence.
b. What are relevance and reliability (as they relate to audit evidence)? How do these concepts relate to the auditors’ requirement to gather sufficient appropriate evidence?
c. How does the source of evidence affect its reliability?
d. How does the effectiveness of the entity’s internal control affect the sufficiency and
appropriateness of evidence gathered by auditors?

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