ACCA Audit and Assurance (F8) Practice Exam

What does sufficiency of audit evidence measure?

1. Quantity of audit evidence

2. Quality of audit evidence

3. Relevance of audit evidence

4. Reliability of audit evidence

The correct answer is: Quantity of audit evidence

Sufficiency of audit evidence pertains primarily to the quantity of audit evidence gathered by the auditor during an audit. It reflects the idea that a sufficient amount of evidence must be accumulated to support conclusions and provide a reasonable basis for the auditor's opinion on the financial statements. In practice, sufficiency is determined by considering the risks of material misstatement in the audit process and the effectiveness of the internal controls present in the entity being audited. The auditor must gather enough evidence to form a valid conclusion about whether financial statements are free from material misstatement, hence ensuring that the audit is both thorough and justified. While quality, relevance, and reliability are also crucial characteristics of audit evidence, they correspond more closely to how the evidence is evaluated rather than the amount collected. The quantity is what the sufficiency is fundamentally concerned with, marking it as the primary measure in the context of the question.