Which of the Following Is the Most Accurate Statement Regarding

question 44

Multiple Choice

Which of the following is the most accurate statement regarding audit evidence?

• A)Audit evidence gathered by an auditor from outside an enterprise is reliable.
• B)Accounting data developed under satisfactory conditions of internal control are more relevant than data developed under unsatisfactory internal control conditions.
• C)Oral representations made by management are not valid evidence.
• D)The auditor must obtain sufficient appropriate audit evidence.

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Definitions:

Reacquired

Refers to stock or securities that a company buys back from its shareholders.

Originally Issued

Refers to securities or financial instruments that are sold for the first time to investors.

Stated Value

The nominal value of a share of stock as determined by the issuing company, which may differ from its market value.

Common Stock

Shares entitling their holder to dividends that vary in amount and may even be missed, depending on the fortunes of the company.