Audit Evidence

question 290

Multiple Choice

Audit evidence:

• A) Is sufficient when it is factual and would convince an informed person to reach the same conclusion
• B) Is competent if it consistently produces the same outcomes
• C) Is relevant when it is directly related to audit comments, recommendations and conclusions
• D) All of these

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Definitions:

Incremental Revenues

Additional income received from a particular action or decision, beyond what was previously earned.

Incremental Costs

Additional costs that result from increasing production or engaging in a new activity, often used in decision-making processes.

Operating Capacity

The maximum level of activity that a company can sustain with its current resources and infrastructure.

Out-of-pocket Cost

Expenses that require immediate cash payment by an individual or company.