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Which of the following terms identifies a requirement for audit evidence?
a. Appropriate.
b. Reasonable.
c. Disconfirming.
d. Adequate.
Explanation
Choice "a" is correct. The auditor must obtain sufficient appropriate audit evidence to afford a reasonable basis for the opinion.
Choice "d" is incorrect. Auditing standards do not use the word adequate in describing the requirements for audit evidence; the term is sufficient appropriate audit evidence.
Choice "b" is incorrect. Auditing standards use the word reasonable to describe the type of assurance gained by the auditor as the basis for the opinion, and not to describe a specific requirement for audit evidence.
Choice "c" is incorrect. Auditing standards do not use the word disconfirming in describing the requirements for audit evidence.
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