ACCA Audit and Assurance (F8) Practice Exam

Which of the following is a characteristic of audit evidence?

1. Timeliness

2. Relevance

3. Reliability

4. Appropriateness

The correct answer is: Appropriateness

Appropriateness is a fundamental characteristic of audit evidence, referring to the quality of the evidence in terms of its relevance and reliability. It is essential for auditors to gather evidence that not only pertains to the specific audit objectives but also comes from credible sources. This ensures that the auditor can form reasonable conclusions based on the evidence collected. When audit evidence is deemed appropriate, it combines the attributes of being both relevant to the specific audit questions being addressed and reliable enough to support the auditor's findings. For example, evidence from a well-maintained internal control system is considered more appropriate compared to evidence from a poorly documented source. Timeliness, relevance, and reliability are also important characteristics of audit evidence; however, appropriateness encompasses the essential aspects of both relevance and reliability, making it the most comprehensive characteristic to refer to when determining the suitability of evidence for audit purposes.