In Evaluating the Validity of Different Types of Audit Evidence

question 288

Multiple Choice

In evaluating the validity of different types of audit evidence, which of the following conclusions is not correct?

• A) Recomputation, though highly valid, is limited in usefulness due to its limited scope.
• B) The validity of documentary evidence is independent of the effectiveness of the control system in which it was created.
• C) Internally created documentary evidence is considered less valid than externally created documentary evidence.
• D) The validity of confirmations varies directly with the independence of the party receiving the confirmation.

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Definitions:

Article V

Depending on context, this could refer to various legal or constitutional provisions, but generally involves rules for amendment or alteration of a document or organization's governing principles.

Constitution Laws

Body of law which defines the relationship of different entities within a state, namely, the executive, the legislature, and the judiciary.

State Law

Legislation enacted by a state government that is applicable within the boundaries of that state.

Commerce Clause

A provision in the U.S. Constitution that grants Congress the power to regulate commerce with foreign nations, and among the several states and with the Indian tribes.