Examlex

Solved

There Are Six Factors That Affect the Reliability of Audit

question 81

Essay

There are six factors that affect the reliability of audit evidence.One factor is the independence of the provider (i.e. ,evidence obtained from a source outside the client company is more reliable than that obtained within).Identify and discuss the remaining five factors that affect the reliability of evidence.


Definitions:

Willingness To Pay

The maximum amount an individual is prepared to spend to acquire a good or service.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, representing the benefit to producers.

Binding Price Ceiling

A government-imposed price limit on how high a price can be charged for a product or service, set below the market equilibrium, causing shortages.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual market price they receive, essentially the profit producers earn from selling a good.

Related Questions