Which of the Following Statements Is Generally Correct About the Appropriateness

question 42

Multiple Choice

Which of the following statements is generally correct about the appropriateness of audit evidence?

• A)The more effective the internal control, the more assurance it provides about the reliability of the accounting data and financial statements.
• B)Appropriateness of audit evidence refers to the amount of corroborative evidence obtained.
• C)Information obtained indirectly from independent outside sources is more persuasive than the auditor's direct personal knowledge obtained through observation and inspection.
• D)Appropriateness of audit evidence refers only to audit evidence obtained from outside the entity.

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Definitions:

Trade Discount

A trade discount is a reduced price offered by suppliers to retailers or other professionals in the industry, encouraging bulk purchases or to compensate for distribution services.

Cumulative Quantity Discount

A discount policy where the price reduction is based on the total volume of purchases made over time, encouraging repeated business by rewarding larger orders.

Stated Period

A specific, predefined duration of time mentioned in a document or agreement.

Certain Amount

A specific quantity or measure of something, often used in financial contexts or to specify quantities.