Determine Which of the Following Is the Most Correct Statement

question 141

Multiple Choice

Determine which of the following is the most correct statement 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:

Projected Benefit Obligation

An actuarial calculation of the present value of pension benefits owed to employees, measured by the projected salary levels.

Interest Cost

The expense associated with borrowing funds, calculated as the rate of interest times the principal amount of the debt.