(a) Some of significant sources of audit evidence are: I) Accounting records ii) Audit procedures performed to test accounting records iii) Information obtained during the audit of previous years iv) Audit firm’s quality control procedures for acceptance of audit v) Work of management’s expert vi) Confirmations from third parties vii) Comparable data of other companies engaged in the same industry viii) Written representations from management to support other evidences obtained during the audit.

(b) Factors that influence judgment as to what is sufficient evidence are:

1. Risk of material misstatement
2. Materiality of the account balance
3. Past experience
4. Misstatements found during audit
5. Source and reliability of data
6. Timeliness of financial reporting
7. Cost verses benefits.                                                                                                                                                                                                                                                                                                                                                                                                                          c) I. Circumstances beyond the control of the entity the entity’s accounting records have been destroyed. The accounting records of a significant component have been seized indefinitely by governmental authorities. ii. Circumstances relating to the nature or timing of the auditor’s work the timing of the auditor’s appointment is such that the audit is unable to observe the counting of the physical inventories. The auditor determines that performing substantive procedure alone is not sufficient, but the entity’s controls are not effective. The entity is required to use the equity method of accounting for an associated entity, and the auditor is unable to obtain sufficient appropriate audit evidence about the latter’s financial information to evaluate whether the equity method has been appropriate applied. iii. Limitations imposed by management. Management prevents the auditor from observing the counting of the physical inventory. Management prevents the auditor from requesting external confirmation of specific account balances.