What makes audit evidence appropriate?

The appropriateness of audit evidence is determined by its relevance and reliability. Relevance refers to the degree to which the evidence addresses the specific audit objectives and provides insights into the area being audited. Reliable evidence must be credible and dependable; it should be derived from trustworthy sources and methods.

In an auditing context, evidence that is both relevant and reliable provides a solid foundation for conclusions drawn during the audit process. If the evidence is not relevant to the audit objectives, or if it lacks reliability, it cannot effectively support the auditor's conclusions or recommendations. Therefore, focusing on these two key aspects ensures that the audit findings are justified and well-founded, ultimately enhancing the audit's overall value and credibility.

Sufficiency, approval, and timeliness are important considerations in an audit process but do not define the appropriateness of the evidence itself in the same way that relevance and reliability do. Sufficiency relates to the quantity of evidence collected; approval pertains to the acceptance of audit findings; timeliness addresses the currency of the evidence concerning the audit period. While all these factors are relevant in different aspects of auditing, they do not encompass the core definition of the appropriateness of audit evidence as relevance and reliability do.