Which of the Following Statements Is Generally Correct About the Appropriateness

question 48

Multiple Choice

Which of the following statements is generally correct about the appropriateness of audit evidence?

• A)Auditors' direct personal knowledge, obtained through observation and inspection, is of higher quality than information obtained indirectly from independent outside sources.
• B)To be reliable, audit evidence must be either valid or relevant, but need not be both.
• C)Client accounting data alone may be considered sufficient appropriate audit evidence to issue an unmodified opinion on client financial statements.
• D)Appropriateness of audit evidence refers to the amount of corroborative evidence to be obtained.

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Definitions:

Unemployment

The situation in which individuals who are capable of working and are seeking work are unable to find employment.

Marginal Propensity

The ratio of change in an economic variable (such as consumption) that occurs with a change in another variable (such as income).

Investment Accelerator

The concept that suggests investment spending in an economy may increase due to growth in overall economic activity, boosting further growth.

Aggregate Demand

Total expression of need for goods and services within an economic environment, anchored at a specific total price level across a designated duration.