Which of the Following Statements Concerning Audit Evidence Is Correct

question 490

Multiple Choice

Which of the following statements concerning audit evidence is correct?

• A) To be appropriate, audit evidence should be either reliable or relevant, but need not be both.
• B) The measure of the sufficiency of audit evidence lies in the auditor's judgment.
• C) The difficulty and expense of obtaining audit evidence concerning an account balance is always a valid basis for omitting the test.
• D) A client's accounting data can be sufficient audit evidence to support the financial statements.

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Definitions:

Expansionary Fiscal Policy

To fight recessions, the federal government lowers taxes and/or raises spending.

Government Spending

Expenditures made by the government of a country on collective needs and wants such as infrastructure, public safety, education, and healthcare.

Public Debt

Money that is owed by a government to creditors within the country or externally, arising from borrowing to finance expenditures exceeding tax revenues.

Budget Deficits

The amount by which government spending exceeds its revenue over a specified period, leading to a need for borrowing or currency printing.