Document ID: chunk:federal_register_of_legislation:F2022C01189:reg:7:p3
Version: federal_register_of_legislation:F2022C01189
Segment Type: reg
Provision Reference: reg 7 (pt 3/21)
Character Range: 15814–19015

audit evidence) means 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.

(c)                Audit evidence means information used by the auditor in arriving at the conclusions on which the auditor's opinion is based.  Audit evidence includes both information contained in the accounting records underlying the financial report and information obtained from other sources.

(d)                External information source means an external individual or organisation that provides information that has been used by the entity in preparing the financial report, or that has been obtained by the auditor as audit evidence, when such information is suitable for use by a broad range of users. When information has been provided by an individual or organisation acting in the capacity of a management's expert, service organisation[6], or auditor's expert[7] the individual or organisation is not considered an external information source with respect to that particular information. (Ref: Para. A1‑A4)

(e)                Management's expert means an individual or organisation possessing expertise in a field other than accounting or auditing, whose work in that field is used by the entity to assist the entity in preparing the financial report.

(f)                 Sufficiency (of audit evidence) means the measure of the quantity of audit evidence.  The quantity of the audit evidence needed is affected by the auditor's assessment of the risks of material misstatement and also by the quality of such audit evidence.

Requirements

Sufficient Appropriate Audit Evidence

6.                   The auditor shall design and perform audit procedures that are appropriate in the circumstances for the purpose of obtaining sufficient appropriate audit evidence.  (Ref: Para. A5‑A29)

Information to Be Used as Audit Evidence

7.                   When designing and performing audit procedures, the auditor shall consider the relevance and reliability of the information to be used as audit evidence, including information obtained from an external information source.  (Ref: Para. A30‑A44)

8.                   If information to be used as audit evidence has been prepared using the work of a management's expert, the auditor shall, to the extent necessary, having regard to the significance of that expert's work for the auditor's purposes:  (Ref: Para. A45‑A47)

(a)                Evaluate the competence, capabilities and objectivity of that expert;  (Ref: Para. A48‑A54)

(b)                Obtain an understanding of the work of that expert; and  (Ref: Para. A55‑A58)

(c)                Evaluate the appropriateness of that expert's work as audit evidence for the relevant assertion.  (Ref: Para. A59)

9.                   When using information produced by the entity, the auditor shall evaluate whether the information is sufficiently reliable for the auditor's purposes, including as necessary in the circumstances:

(a)                Obtaining audit evidence about the accuracy and completeness of the information; and (Ref: Para. A60‑A61)

(b)                Evaluating