subject to certain risks of material misstatement;

this fact creates risks for any auditor attempting to

conduct a quality audit. Auditors first identify and
assess the risks of material misstatement, and then
they respond to those risks. In doing so, the auditor The specific
audit procedures performed must address the risk of
material misstatement in the financial statements or
the likelihood that internal control over financial
reporting contains material weaknesses. The
auditors process of gathering and assessing the
evidence must be documented, clearly laying out the
evidence gathered, the auditors evaluation of that
evidence, and the conclusions reached. In this
chapter, we build on the concept of audit evidence
presented in Chapter 5 by further discussing the
type, extent, and timing of audit procedures typically
performed during a financial statement or integrated

audit.
Through studying this chapter, you will be able to achieve these learning objectives:
1. Discuss the importance of the evidence concepts
of appropriateness and sufficiency.
2. Identify factors affecting the appropriateness of
audit evidence.
3. Make professional judgments about the type and
timing of audit procedures to use to obtain audit
evidence.
4. Discuss the use of, and apply, substantive
analytical procedures.
5. Identify factors affecting the sufficiency of audit
evidence.
6. Identify issues related to audit evidence needed
for accounts involving management estimates..and statutory law.
Source: Karla M. Johnstone
University of WisconsinMadison

Audrey A. Gramling
Bellarmine University
Larry E. Rittenberg