Audit Evidence Can Come in Different Forms with Different Degrees

question 43

Multiple Choice

Audit evidence can come in different forms with different degrees of persuasiveness.Which of the following is the least persuasive type of evidence?

• A)bank statement obtained from the client
• B)computations made by the auditor
• C)prenumbered client sales invoices
• D)a vendor's invoice

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Definitions:

Purely Competitive Firm

A firm operating in a market where there are many sellers and buyers, products are identical, and there are no barriers to entry, leading to zero long-term economic profits.

Profit

The financial gain made in a transaction or operation, calculated as the difference between revenue and expenses.

Total Fixed Cost

The sum of all costs required to produce the first unit of a product which do not change with the volume of output.

Zero Output

A scenario in production where no goods or services are produced, often due to complete shutdown of operations.