Which of the Following Is Generally True About the Sufficiency

question 3

Multiple Choice

Which of the following is generally true about the sufficiency of audit evidence?

• A)The amount of evidence that is sufficient varies directly with the acceptable risk of material misstatement.
• B)The amount of evidence concerning a particular account varies inversely with the materiality of the account.
• C)The amount of evidence concerning a particular account varies inversely with the inherent risk of the account.
• D)When evidence is appropriate with respect to an account it is also sufficient.

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Definitions:

Technological Developments

Advancements and innovations in technology that affect productivity, efficiency, and economic growth.

Inventive Activities

The acts of creating or designing new products or processes, especially those that lead to technological advancement.

Property Right

A legal right or interest that an individual has in a defined property, including rights to use, sell, or lease it.

Production Processes

The methods, techniques, and sequences involved in manufacturing a product or providing a service from raw materials or inputs.