Week 2-2

Question 1

two types of evidence

Answer 1

1. Sufficient (quantity)
   - Captures quantity of audit evidence
   - Greater risk of misstatement (RMM) requires higher quantity of audit evidence
   - Higher quality of evidence results in lower quantity of evidence
2. Competent (quality)
   - Captures quality or reliability of evidence
   - Depends on circumstances under which evidence is
   gathered

Question 2

The pervasiveness of audit evidence – Salterio and Koonce
(1997)

Answer 2

Conclusion of the paper
- Auditors use precedents
- Precedents do not interact with the number of sources
- Precedents do interact with the position of the client