Generally Accepted Auditing Standards Recognize Two Categories of Evidential Matter

question 42

Multiple Choice

Generally accepted auditing standards recognize two categories of evidential matter: underlying accounting data and corroborating information. In making an audit in accordance with GAAS:

• A) corroborating information is always required, while underlying accounting data may be gathered under certain circumstances.
• B) underlying accounting data must always be gathered, while corroborating information need only be obtained when the accounting records are not reliable.
• C) both categories are required.
• D) the auditor may choose the category to use, and omit the other.
• E) neither category is required.

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Definitions:

Solo Negotiator

An individual representing one's own interests or those of an organization in a negotiation, without team support.

Positive Benefits

favorable or advantageous outcomes resulting from a specific course of action.

Complexity

The state or quality of being intricate or complicated.

Procedurally Complex

Involving or characterized by intricate and detailed processes that require careful navigation and understanding.