25 July 2025
Sure! Here’s a concise explanation of **SA 10 (Statement on Auditing Standards 10)**:
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### SA 10: **“Audit Evidence”**
**Purpose:** SA 10 deals with the auditor’s responsibility to obtain **sufficient and appropriate audit evidence** to support the audit opinion on the financial statements.
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### Key Points of SA 10:
1. **Audit Evidence** is the information collected by the auditor to form a basis for the audit opinion.
2. The auditor should plan and perform audit procedures to **obtain sufficient (quantity)** and **appropriate (quality)** evidence.
3. Types of audit evidence include:
* Physical examination * Documentary evidence * Oral representations from management * Observation of processes or procedures * Confirmations from third parties * Analytical procedures
4. The **reliability** of audit evidence depends on its source and nature. For example, evidence obtained directly by the auditor is more reliable than that obtained indirectly.
5. The auditor uses **professional judgment** to decide which procedures to perform and when enough evidence has been gathered.
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### Summary:
SA 10 guides auditors to gather and evaluate evidence properly so they can give a well-supported opinion on financial statements.
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