Audit Manual – Chapter 6 (2025/2026) – 55 Exam Questions & Answers on Audit Evidence, Sufficiency, Appropriateness & Legal Inquiries

This document contains 55 fully verified exam questions with correct answers for Audit Manual Chapter 6, updated for the 2025/2026 auditing standards. It provides a comprehensive explanation of audit evidence—its definition, sufficiency, and appropriateness—and how auditors gather, evaluate, and document it to support audit conclusions. The material covers the types of evidence (physical, documentary, testimonial), key techniques like vouching, inspection, re-performance, analytical procedures, scanning, and external confirmations, as well as how to assess evidence relevance and reliability. Special emphasis is given to legal inquiries and the use of letters of inquiry to obtain information on litigation, claims, and contingencies from client legal counsel. It explains conditions for recognizing loss contingencies, evaluating evidence limitations, and identifying internal control deficiencies based on multiple findings. The guide also addresses the balance between quality and quantity of evidence, highlighting circumstances when evidence is insufficient or unreliable. This resource is ideal for auditors, CPA candidates, internal audit professionals, compliance officers, and accounting students preparing for examinations or professional practice. It is equally valuable for audit managers and quality reviewers who require a precise, exam-ready reference on evidence collection and evaluation in accordance with current auditing standards. Keywords: audit evidence, sufficiency, appropriateness, relevance, reliability, physical evidence, documentary evidence, testimonial evidence, vouching, external confirmations, legal inquiries, loss contingencies, internal control deficiencies