Which of the Following Is a Correct Statement Regarding Audit

question 87

Multiple Choice

Which of the following is a correct statement regarding audit evidence?

• A) A large sample of evidence provided by an independent party is always considered persuasive evidence.
• B) A small sample of only one or two pieces of highly appropriate evidence is always considered persuasive evidence.
• C) The auditor must obtain a sufficient amount of relevant and reliable evidence to form an opinion on the fairness of the financial statements.
• D) Evidence is usually more reliable for balance sheet accounts when it is obtained within six months of the balance sheet date.

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Definitions:

Better Wages

An improvement in the compensation that workers receive for their labor, often a key objective of labor unions and worker advocacy groups.

National Labor Relations Act

A foundational piece of U.S. legislation, established in 1935, that protects workers' rights to organize, to bargain collectively, and to engage in other activities related to collective bargaining and mutual aid.

Employer's Willingness

An indication of how open or receptive an employer is to engaging in practices such as negotiations, improvements, or concessions in the workplace.

Closed Shop Arrangements

Employment practices where only members of a labor union can be hired and remain employed.