ACCA Advanced Audit and Assurance (AAA) Practice Exam

Which aspect does not affect the sufficiency of audit evidence?

1. Adequacy of the financial reporting framework

2. Quality of audit evidence obtained

3. Auditor’s assessment of risks and material misstatements

4. Quantity of evidence collected

The correct answer is: Adequacy of the financial reporting framework

The sufficiency of audit evidence is primarily determined by factors related to the quality, quantity, and risk assessments within the audit process. The adequacy of the financial reporting framework, while important for overall financial reporting, does not directly impact the sufficiency of the audit evidence itself. The quality of the audit evidence pertains to its reliability and relevance to the specific assertions being audited. High-quality evidence typically enhances the audit's conclusions. Additionally, the auditor's assessment of risks and material misstatements is crucial because it informs the level of evidence needed to support the audit opinions. If the risks are higher, the auditor will require more persuasive audit evidence. Lastly, the quantity of evidence collected plays a critical role; more evidence can increase the assurance obtained, assuming it is of adequate quality. In contrast, the adequacy of the financial reporting framework refers to the principles and standards applied in preparing the financial statements. While a strong framework helps ensure the integrity of the financial statements, it does not alter the quantity or quality of the evidence collected by the auditors during their procedures. Therefore, the sufficiency of audit evidence remains unaffected by this aspect.