Which of the Following Statements Relating to the Appropriateness of Audit

question 3

Multiple Choice

Which of the following statements relating to the appropriateness of audit evidence is always true?

• A) Evidence gathered by an auditor from outside an entity is reliable.
• B) Accounting data developed under a satisfactory internal control are more relevant than data developed under unsatisfactory internal control conditions.
• C) Oral representations made by management are not valid evidence.
• D) Evidence gathered by auditors must be both reliable and relevant to be considered appropriate.

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Definitions:

Socially Responsible

Acting with consideration for the impact one's actions have on society, the environment, and the welfare of others.

Pay Practices

The methods and policies businesses use to compensate their employees, including wages, salaries, bonuses, and benefits.

Government-Mandated Safety Standards

Regulatory requirements set by the government to ensure products meet specified safety and efficacy benchmarks to protect consumers.

Credit Card Data Theft

The unauthorized access and retrieval of personal credit card information with the intent to commit fraud or theft.