Professional judgement can be evaluated based on whether the judgement reached reflects a competent application of auditing and accounting principles and is appropriate in the light of, and consistent with, the facts and circumstances that were known to …

Professional judgement needs to be exercised throughout the audit.  It also needs to be appropriately documented.  In this regard, the auditor is required to prepare audit documentation sufficient to enable an experienced auditor, having no previous …

(Ref: Para. 5 and 17 ) Sufficiency and Appropriateness of Audit Evidence …

Audit evidence is necessary to support the auditor’s opinion and report.  It is cumulative in nature and is primarily obtained from audit procedures performed during the course of the audit.  It may, however, also include information obtained from other …

The sufficiency and appropriateness of audit evidence are interrelated.  Sufficiency is the measure of the quantity of audit evidence.  The quantity of audit evidence needed is affected by the auditor’s assessment of the risks of misstatement (the higher …

Appropriateness is the measure of the quality of audit evidence; that is, its relevance and its reliability in providing support for the conclusions on which the auditor’s opinion is based.  The reliability of evidence is influenced by its source and by …

Whether sufficient appropriate audit evidence has been obtained 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, is a matter of professional judgement.  …

Audit Risk …

Audit risk is a function of the risks of material misstatement and detection risk.  The assessment of risks is based on audit procedures to obtain information necessary for that purpose and evidence obtained throughout the audit.  The assessment of risks …

For purposes of the Australian Auditing Standards, audit risk does not include the risk that the auditor might express an opinion that the financial report is materially misstated when they are not.  This risk is ordinarily insignificant.  Further, audit …