Certified Government Auditing Professional (CGAP) Practice Exam

Which of the following characterizes sufficient audit evidence?

1. It must be authoritative.

2. It includes expert opinions based on estimations.

3. It adequately supports the audit conclusion and findings.

4. It is primarily quantitative data over qualitative insights.

The correct answer is: It adequately supports the audit conclusion and findings.

Sufficient audit evidence is characterized by its ability to adequately support the conclusions and findings of an audit. This means that the evidence gathered must be robust enough to confirm or refute the assertions made in the financial statements or the subject of the audit. The assurance that the auditors provide to stakeholders is heavily reliant on this sufficiency of evidence. It ensures that the audit results are trustworthy and can withstand scrutiny, reflecting the overall integrity and reliability of the audit process. While authoritative sources and expert opinions can be part of audit evidence, they do not alone define sufficiency. Similarly, while quantitative data can be valuable, it is essential to balance it with qualitative insights to get a comprehensive picture. Therefore, the most important aspect of sufficient audit evidence is its competency in adequately supporting the audit conclusions and findings. This approach aligns with the principles of objectivity and reliability, which are crucial for effective auditing.