QUESTION TWO

$[20]$

Sufficient audit evidence means that a satisfactory amount $($quantity$)$ of audit evidence has been gathered, appropriate audit evidence means that the evidence is reliable and relevant, ie$.$ it has the necessary quality which the auditor requires. The following audit procedures have been carried out by the audit team on the audit of Futex $($Ply$)$ Ltd$,$ an electronics manufacturer:

Extracted a sample of Items from the inventory sheets and performed test counts at the annual Inventory count.

Reviewed the report of an electronics expert who was engaged $($by the audit firm$)$ to value work in progress at year end.

Attended a wage count.

Discussed the allowance for bad debts with the credit controller.

Re$-$performed the casts and extensions of $($he payroll for three different weeks.

Reviewed the client's debtor's age analytics

Required:

$2\mathrm{.}1.$ Discuss the factors which the auditor should consider when assessing the quality of audit evidence

$2\mathrm{.}2.$ Discuss the reliability of the evidence gathered from each of the above audit procedures.

$2\mathrm{.}3.$ State to which assertion each of the above a most relevant.