What is meant by due professional care? What is sufficient appropriate audit evidence?

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Due diligence care refers to the implementation of care and skills of competent and prudent auditor while performing the auditing task. It is said to be exercised when the work of an audit is undertaken according to the standards set. Besides auditing, due diligence care is to be exercised in the planning for and preparing the auditor’s report. In case of its application, the auditors are liable to their clients for undesirable issues like fraud, negligence, breach of contract, etc.

The main objective of designing and performing audit procedures to get sufficient appropriate audit evidence so that reasonable conclusions can be drawn. Then the auditor’s opinion are presented on the basis of these conclusions. Sufficiency is related to quantity aspect whereas appropriate is related to quality and reliability aspect. The assessment of risk is one of the important element related to quantity of audit evidence. If there is high risk, there is high requirement of quantity of audit evidence. On the other hand, to main reliability, evidence should be derived from trustworthy and dependable sources. Moreover, the audit evidence to be relevant is required to address the purpose of audit procedure.

ekkarill92 answered 1 month ago

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