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:

Venture Capital

Financial investment provided to early-stage, high-potential, growth startup companies.

Risky Investment

An investment with a high potential for loss but also the opportunity for substantial gains.

Organizational Decisions

Choices or judgments made within an organization that determine its actions and strategies.

Quality

The standard of something as measured against other things of a similar kind; the degree of excellence of something.