Determine Which of the Following Is Most Correct Regarding the Reliability

question 32

Multiple Choice

Determine which of the following is most correct regarding the reliability of audit evidence.

• A)Information that is indirectly obtained from external sources is the most reliable audit evidence.
• B)Reliability of audit evidence is dependent upon the evidence being subjective.
• C)Reliability of evidence refers to the amount of evidence obtained.
• D)If internal controls are effective, evidence obtained is more reliable than when the controls are not effective.

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Definitions:

Truth-in-Lending Act

U.S. federal law designed to promote transparency in consumer credit by requiring lenders to disclose important terms and costs of loans to borrowers.

Secured by Mortgage

Describes a loan or obligation guaranteed with the collateral of real estate property through a legal agreement.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources, typically categorized into residential, commercial, or industrial properties.

Lemon Laws

Laws designed to protect consumers from fraudulently represented defective vehicles, allowing buyers to get a refund or replacement for a "lemon" car.