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:

Exurbs

Areas situated beyond the suburbs of a city, typically characterized by lower density of population and often sought for a more rural lifestyle.

Micropolitan Statistical Area

An urban area in the United States defined by the Office of Management and Budget, based on census data, that has at least one urban cluster of at least 10,000 but less than 50,000 population.

Urban Cluster

A densely populated area that has a total population of less than 50,000 people.

Economic Integration

The process by which countries reduce trade and investment barriers to create closer economic cooperation or amalgamation.