Which of the Following Statements Is Generally Correct About the Reliability

question 330

Multiple Choice

Which of the following statements is generally correct about the reliability of audit evidence?

• A) The more effective the internal control structure, the more assurance it provides about the reliability of the accounting data and financial statements.
• B) Reliability of audit evidence refers to the amount of corroborative evidence obtained.
• C) Information obtained indirectly from independent outside sources is more persuasive than the auditor's direct personal knowledge obtained through observation and inspection.
• D) Reliability of audit evidence refers to the audit evidence obtained from outside the entity.

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Definitions:

Prevention Cost

Expenses incurred to avoid defects in products or services.

Quality Cost Report

A document that outlines the costs associated with ensuring the quality of products or services, including prevention, appraisal, and failure costs.

Appraisal Cost

The expenses associated with ensuring quality and compliance of products or services, including testing, inspections, and audits.

Quality Cost Report

A financial report detailing the costs associated with ensuring product or service quality, including prevention, appraisal, and failure costs.