Which of the Following Is an Essential Factor in Evaluating

question 60

Multiple Choice

Which of the following is an essential factor in evaluating the sufficiency of evidence? The evidence must:

• A) be well documented and cross-referenced in the audit documents.
• B) be based on sources that are considered reliable.
• C) bear a direct relationship to the audit objective.
• D) be of a quantity to enable the auditor to form an opinion.

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Definitions:

Partnership

A sanctioned form of business collaboration among two or more persons who equally participate in managing the business and dividing its profits.

Proprietorship

A type of business entity owned and run by one individual where there is no legal distinction between the owner and the business.

Accounting Records

Documentation and books that keep track of the financial transactions, operations, and condition of a business.

Revenues Recognized

Refers to the income that a company has earned and reported on its financial statements for a specific period, in accordance with accounting principles.