While auditing Happy Pvt. Ltd., CA M reviews a large number of invoices collected by the audit team. However, noticing that only a few have…
CA Intermediate · Auditing and Ethics · RTP · September 2025
While auditing Happy Pvt. Ltd., CA M reviews a large number of invoices collected by the audit team. However, noticing that only a few have third-party confirmations, CA M reminds the team that simply having more documents doesn't ensure strong audit evidence and explained that reliability or quality matters too. What CA M is trying to explain in the given situation?
Suggested Answer and Working Notes:
Correct Answer: Option (D)
Sufficiency refers to quantity; appropriateness refers to quality.
Topics: Audit Evidence
Related Questions in this Topic
- VW & Co., Chartered Accountants, are auditing GHI Ltd., a company engaged in infrastructure development. The company has...
- TUV & Co., Chartered Accountants, are appointed as statutory auditors of DEF Ltd. for the year ending on 31st March, 202...
- While evaluating the reliability of audit evidence, the audit team identifies the following documents: Delivery challa...
- An auditor wants to ensure that he has complete knowledge of all locations where a company's inventories are stored. Sin...
- CA Arjun, the statutory auditor of XYZ Ltd., was engaged to conduct the audit of the financial statements for the financ...