Question
Whether sufficient appropriate audit evidence has been
obtained to reduce audit risk to an acceptable low level, and thereby enable the auditor to draw reasonable conclusion on which to base the auditor’s opinion, is a matter of ________.Solution
Professional Judgement is the application of relevant training, knowledge and experience within the context provided by auditing, accounting and ethical standards in making informed decisions about the courses of action that are appropriate in the circumstances of the audit engagement. It is required with respect to Materiality and audit risk, nature, timing and extent (NTE) of audit procedures, evaluating sufficiency & appropriateness of audit procedures, evaluating management judgement in applying applicable FRF and drawing conclusions based on audit evidence As per the SA 200, the other key requirements of an Independent Auditor include: ·      Ethical requirements – comply with relevant ethical requirements and it includes adhering to independence with respect to audit engagements. code of ethics are issued by ICAI. Examples – integrity, objectivity, professional competence and due care, confidentiality, professional behaviour ·      Professional Skepticism – attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud and a critical assessment of audit evidence. Alertness is required with respect to Contradictory audit evidence, reliability of documents, conditions indicating possible fraud, circumstances requiring audit procedures in addition to those suggested in SAs. ·      Sufficient Appropriate Audit Evidence and Audit Risk - Sufficiency refers to quantum and appropriateness refers to quality. Purpose is to reduce audit risk to an acceptably low level and thereby enable the auditor to draw reasonable conclusions on which to base the auditor’s opinion.
 Select the set in which the numbers are related in the same way as are the numbers of the following set.
(7, 9, 48)
(6, 8, 42)
(N...
Select the number from among the given options that can replace the question mark (?) in the following series.
18, 27, 34, 39, 42, ?
‘Lavish’ is related to ‘Austere’ in the same way as ‘Prejudiced’ is related to ‘________’. (The words must be considered as meaningful E...
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In a certain code language, ‘DOING’ is written as ‘BQTOV’ and 'ZEBRA' is written as 'FAAKB'. How will ‘STORM’ be written in that language?
A number has been denoted to each of the given letters. Select the option from the following four possible arrangements of these numbers that forms a me...
 'A + B' means 'A' is the sister of 'B'.
'A @ B' means 'A' is the wife of 'B'.
'A $ B' means 'A' is the son of 'B'.
'A % B' means ...
The following figures show the sequence of folding a transparent sheet of paper and the method of cutting the folded paper. What will this paper look li...
i) Who is sitting in the second place on the left side of the Dani, Chintu is sitting at the fourth place on the right side.
ii) There are three ...
Select the pair that follows the same pattern as that followed by the two pairs given below. Both pairs follow the same pattern.
TIM : WKN
GUA : JWB