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:

Organizational Costs

Expenses involved in running a company, including both direct and indirect costs.

Stress-Related Disease

Health conditions that are directly or indirectly caused by or exacerbated by stress, including psychological and physical health issues.

Health Insurance

A type of insurance coverage that pays for an insured individual's medical and surgical expenses.

Industrial Accidents

Unplanned events that occur in the workplace resulting in injury, death, or property damage.