Audit Evidence Has Two Primary Qualities for the Auditor; Relevance

question 112

Multiple Choice

Audit evidence has two primary qualities for the auditor; relevance and reliability. Given the choices below, which provides the auditor with the most reliable audit evidence?

• A) general ledger account balances
• B) confirmation of accounts receivable balance received from a customer
• C) internal memo explaining the issuance of a credit memo
• D) copy of month-end adjusting entries

---

Definitions:

Written Offer

A formal proposal presented in written form by one party to another, stipulating the terms under which the offeror is willing to engage in a contract.

Sold

The act of transferring ownership of an item or service from one party to another in exchange for money or other compensation.

Clickwrap Agreement

A digital contract that requires users to agree to terms and conditions by clicking a button or checking a box before proceeding with the use of service or software.

Online Agreement

A contract entered into electronically via the internet, covering terms and conditions related to the use of websites or online services.