Which of the Statements Regarding Persuasiveness of Audit Evidence Is

question 55

Multiple Choice

Which of the statements regarding persuasiveness of audit evidence is correct?

• A) A large sample of evidence that is relevant but not objective is not persuasive.
• B) The auditor must measure the degree to which evidence is either appropriate or sufficient.
• C) A small sample of a small number of highly appropriate evidence is persuasive.
• D) A large sample of evidence from an independent source is always persuasive.

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Definitions:

Marginal Propensity

The tendency of an individual or population to consume or save an extra unit of income.

Lump-Sum Taxes

Taxes that are a fixed amount, not varying with the income or wealth of the taxpayer, and are paid at one time instead of in installments.

Budget Deficit

A situation where a government's expenditures exceed its revenues during a specified period of time, leading to borrowing or debt accumulation.

Discretionary Fiscal Policy

Government policy involving the use of government spending and taxation levels to influence the economy, based on current conditions.