AFM202 Study Guide - Comprehensive Final Exam Guide - Financial Statement, Accounting, Property Income

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM202
• Professor: Alan Mc Naughton

Document Summary

Sufficiency is the measure of the quantity of audit evidence. The assessment of risks is based on audit procedures to obtain information necessary for that purpose and evidence obtained throughout the audit. This is because there are inherent limitations of an audit, which result in most of the audit evidence on which the auditor draws conclusions and bases the auditor"s opinion being persuasive rather than conclusive. The inherent limitations of an audit arise from: the nature of financial reporting, the nature of audit procedures; and, the need for the audit to be conducted within a reasonable period of time and at a reasonable cost. 24. in your own words, explain the trade-offs an auditor must make between the costs of obtaining evidence and its benefits. A cas is relevant to the audit when the cas is in effect and the circumstances addressed by the.