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.

Comprehend the effects of changes in credit policy on sales, receivables, and profitability.

Recognize the role and impact of collection policies on a firm's financial health.

Understand the significance of inventory management in operations and its effect on a firm's financial performance.

Identify the considerations for holding marketable securities and managing idle cash.

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Definitions:

Reply

A response or answer to a question or statement.

Interrogatory

A formal set of written questions required to be answered under oath, used as a part of discovery process in litigation.

Appellate Courts

Courts with the authority to review and revise the outcomes of decisions made by lower courts.

Legal Errors

Mistakes in the application or interpretation of law during courtroom proceedings that can result in an unfair trial or wrongful judgment.