Which of the Following Statements Is NOT True? 'The Evidence-

question 106

Multiple Choice

Which of the following statements is NOT true? 'The evidence- gathering technique of inquiry:

• A) is the auditor's principal method of evaluating the client's internal control.'
• B) requires the gathering of corroborative evidence.'
• C) cannot be regarded as conclusive.'
• D) does not provide evidence from an independent source.'

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Definitions:

Accidental Sale

A transaction where goods or services are sold unintentionally, often due to a misunderstanding or mistake.

Profit Margin

A financial metric used to assess a company's profitability by comparing net income to sales.

Fair Market Value

An estimate of the market value of a property or asset, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller.

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by the parties involved to be enforceable.