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:

$1.$ Extracted a sample of Items from the inventory sheets and performed test counts at the

annual Inventory count.

$2.$ Reviewed the report of an electronics expert who was engaged $($by the audit firm$)$ to

value work in progress at year end.

$3.$ Attended a wage count.

$4.$ Discussed the allowance for bad debts with the credit controller.

$5.$ Re$-$performed the casts and extensions of $($he payroll for three different weeks.

$6.$ 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 $(12)$

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

procedures. $(5)$

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