ACCA Advanced Audit and Assurance (AAA) Practice Exam

What type of evidence is considered sufficient and appropriate in an assurance engagement?

1. Evidence that can be easily acquired

2. Evidence that is financially beneficial

3. Evidence that supports the required level of assurance

4. Evidence that is secretive

The correct answer is: Evidence that supports the required level of assurance

In an assurance engagement, the strength of the evidence gathered is fundamental to establishing credibility and reliability. Sufficient and appropriate evidence must support the level of assurance required. This means that the evidence collected needs to be relevant and reliable, providing a solid foundation for the conclusions drawn in the report. By ensuring that the evidence is adequate to support the level of assurance, the auditor can confidently express their opinion on the subject matter at hand. This is essential, as it reinforces the trust stakeholders place in the auditor’s findings. The quality of the evidence is paramount; it should stand up to scrutiny and be reflective of the conditions surrounding the engagement. In contrast, evidence that is easy to acquire might not hold the thoroughness or depth needed for a robust assurance. Financial benefits related to the evidence, while potentially relevant to business decisions, do not directly relate to the sufficiency or appropriateness of engagement evidence, as the focus should be solely on credibility and relevance. Evidence that is secretive would raise concerns about transparency and reliability, undermining the assurance process. Thus, the emphasis on evidence that supports the required level of assurance is pivotal in forming a solid and trustworthy audit conclusion.