Comment on the sufficient appropriate of audit evidence

What question is this?

But where is this question? I can't find this as a past exam question and it doesn't read as one and "comment on the sufficient of evidence obtained" isn't something I'd expect to see in AAA. Rather, that you would presented with some scenario within which you would identify a lack of sufficient evidence as a quality management issue. Or in a "completion" question with a requirement to comment on "matters....", sufficiency might be one answer point.

Remember you only need half as many comments as there are marks for 50% so just imagine yourself in the situation .... You could use relevant assertions for the loan transaction to generate ideas E.g. for completeness is this the only transaction with M? What has still to be done to confirm this? Thinking about the balance, it's all very well that M intends to repay (valuation) but does he have the means to repay? (why did he need it in the first place?) Related disclosure should be mentioned especially for UK variant, since there is none, it's not complete. You could comment on materiality (is relevant to sufficiency) - on the one hand it is such a small amount does it need any more evidence? But as he is CFO it is material by nature.... Or mention RP and RPTs and RoMM increasing the amount (sufficiency) of evidence. I don't think students generally would think about how the transaction/loan came to the auditor's attention but if the auditor stumbled across it/it was not volunteered as a RPT, that further increases RoMM for RPTs. Was this transaction authorised by the board? If yes, minutes need reviewing... if not, does that say something about M's integrity? You might even go so far as to consider then the sufficiency of evidence in other areas where M has been the source of evidence.