The Strongest Form of Audit Evidence

question 15

Multiple Choice

The strongest form of audit evidence:

• A)Auditor's direct personal knowledge.
• B)Evidence gathered directly from independent third parties.
• C)Evidence produced by independent third parties.
• D)Comprehensive analysis performed by the auditor.

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with an organization's strategic goal.

Capital Improvements

Long-term investment expenditures made to improve, upgrade, or extend the life of a capital asset, often resulting in increased operational efficiency or capacity.

New Ventures

Initiatives or startups that are in their early stages of translating new business ideas into operational businesses.

Capital Budgets

Financial plans that allocate expenditures for acquiring and upgrading physical assets such as buildings and machinery.