Which of the Following Statements Is Most Accurate Regarding Sufficient

question 34

Multiple Choice

Which of the following statements is most accurate regarding sufficient and appropriate documentation?

• A)Accounting estimates are not considered sufficient and appropriate documentation.
• B)Sufficient and appropriate documentation should include evidence that the audit working papers have been reviewed.
• C)If additional evidence is required to document significant findings or issues, the original evidence is not considered sufficient and appropriate and therefore should be deleted from the working papers.
• D)Audit documentation is the property of the client, and sufficient and appropriate copies should be retained by the auditor for at least five years.

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Definitions:

Property Ownership

The legal right to possess, use, and dispose of real estate or personal property.

Co-ownership Interests

Legal rights and interests held by individuals or entities that own property together, entitling them to use, profit from, or dispose of the property jointly.

Tenancy in Common

A form of co-ownership where each owner possesses a fractional share of the entire property, but there is no right of survivorship.

Joint Tenancy

A form of co-ownership where two or more persons hold an equal share in a property, with the right of survivorship upon the death of one owner.