Module 4 - Introduction to Performance Audit_4C

Sufficient information is factual, adequate, and convincing so that a prudent,
informed person would reach the same conclusions as the auditor.
Reliable information is the best attainable information through the use of
appropriate engagement techniques.
Relevant information supports engagement observations and recommendations
and is consistent with the objectives for the engagement.
Useful information helps the organization meet its goals. 68
Useful
Sufficient
Reliable
Relevant
Requirements for Identifying Information
ISSAI 3000 provides direction on establishing sufficiency of evidence:
106) The auditor shall obtain sufficient and appropriate evidence in order to establish
audit findings, reach conclusions in response to the audit objective(s) and audit
questions and issue recommendations when relevant and allowed by the SAI’s
mandate. 69
Sufficiency refers to the quantity of evidence, being enough to achieve the objectives to
satisfy a “reasonable” person (compared with a “prudent informed person” in The IIA
Standards). Arriving at sufficient evidence requires a professional judgment based on
consideration of audit risk, materiality, and the significance of the finding.
The other three dimensions – relevance, reliability, and usefulness – concern the
appropriateness of the evidence. This in turn relates to the importance of the evidence to the
audit topic, as well as its accuracy, consistency, and verifiability. There is a natural hierarchy
of evidence with respect to its relative reliability which is illustrated below, from greatest to
least.
68
Standard 2310 – Identifying Information, The International Professional Practices
Framework, The IIA, 2016.
69
ISSAI 3000 Performance Audit Standard, INTOSAI, 2019.
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