Which of the Following Types of Audit Evidence Is the Most

question 70

Multiple Choice

Which of the following types of audit evidence is the most persuasive?

• A)Prenumbered internal purchase order forms.
• B)Auditee worksheets supporting cost allocations.
• C)Bank statements obtained from the auditee.
• D)Auditee personnel responses to auditor inquiries.

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Definitions:

Holding Cost

The expenses associated with storing unsold goods or materials, including warehousing, insurance, and depreciation costs.

Order Cost

The total expense incurred in making and processing an order, including any procurement, delivery, and handling costs.

Holding Cost

The expenses associated with storing unsold goods or materials, including warehousing, insurance, and depreciation.

Manufacturing Cost

The total expense related to the production of goods, including raw materials, labor, and overhead costs.