Which of the Following Statements Regarding Audit Evidence Is Generally

question 48

Multiple Choice

Which of the following statements regarding audit evidence is generally correct?

• A)The auditor's direct personal knowledge,obtained through observation and inspection,is more persuasive than information obtained indirectly from independent outside sources.
• B)To be appropriate,audit evidence must be sufficient.
• C)Accounting data alone may be considered sufficient appropriate audit evidence to issue an unqualified opinion on financial statements.
• D)Appropriateness of audit evidence refers to the amount of corroborative evidence to be obtained.

---

Definitions:

Funds

Financial assets or resources saved or made available for a specific purpose or investment.

Beta

A measure of a stock's volatility in relation to the overall market; it indicates the risk associated with a security’s returns in comparison to the market's returns.

Portfolio

A collection of investments held by an individual or an institution which may include stocks, bonds, real estate, and other financial assets.

Securities

Assets in the form of stocks representing part ownership in companies on the stock exchange, bonds signifying creditor status with governments or businesses, or options that offer the possibility of ownership.