What does the term "appropriate" refer to in the context of audit evidence?

In the context of audit evidence, the term "appropriate" specifically refers to the relevance and reliability of the evidence gathered by the auditor. Relevance means that the evidence must pertain to the specific assertions or areas being audited, ensuring it addresses the questions at hand. Reliability, on the other hand, is about the credibility of the evidence—where it comes from, how it was obtained, and whether it can be trusted to support the audit conclusions.

For instance, evidence derived from high-quality sources, such as third-party confirmations or well-documented internal controls, is typically viewed as more reliable than evidence based only on management’s assertions. Thus, when an auditor seeks appropriate audit evidence, they aim to collect data that can effectively corroborate their findings and support their final audit opinion, which ultimately upholds the integrity and quality of the audit process.