ACCA Audit and Assurance (F8) Practice Exam

Which of the following statements best describes "sufficiency" in the context of audit evidence?

1. It refers to the volume of evidence obtained

2. It ensures evidence is recent and up to date

3. It focuses on the trained qualifications of the audit staff

4. It guarantees that only internal data is used

The correct answer is: It refers to the volume of evidence obtained

Sufficiency in the context of audit evidence refers primarily to the volume of evidence obtained by the auditor to support their conclusions in the audit process. This means that the auditor must gather an adequate amount of evidence to provide a reasonable basis for their opinion on the financial statements. The effectiveness of an audit is not solely dependent on having a small quantity of evidence; instead, it is essential that the auditor collects enough evidence to support the assertions made within the financial statements. The emphasis on volume is important because if the amount of evidence is insufficient, it may lead to errors in judgment and conclusions, potentially resulting in an inadequate audit opinion. Therefore, sufficiency addresses the quantity needed to enable the auditor to be confident in the findings and evaluations made during the audit. Other options, although relevant to the audit process, do not correctly capture the essence of "sufficiency." For instance, ensuring that evidence is recent or up to date relates more to the relevance of evidence rather than its sufficiency. The qualifications of the audit staff pertain to the competence of the auditors and the quality of the audit rather than the amount of evidence collected. Finally, the guarantee of using only internal data limits the scope of evidence gathering and is not aligned with the auditor's requirement to