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:

Long-term Consequences

The far-reaching effects or outcomes of an action, condition, or disorder that manifest over an extended period.

Harm Reduction

Strategies and approaches aimed at minimizing the negative health, social, and legal impacts associated with behavior, such as drug use, that cannot be completely stopped.

Problematic Substance Use

The use of alcohol, drugs, or other substances in a way that is harmful to the user or to others, often leading to addiction or substance use disorders.

Pros

Advantages or positive aspects of a situation or decision.