Which of the Following Is a Correct Statement Regarding Audit

question 87

Multiple Choice

Which of the following is a correct statement regarding audit evidence?

• A) A large sample of evidence provided by an independent party is always considered persuasive evidence.
• B) A small sample of only one or two pieces of highly appropriate evidence is always considered persuasive evidence.
• C) The auditor must obtain a sufficient amount of relevant and reliable evidence to form an opinion on the fairness of the financial statements.
• D) Evidence is usually more reliable for balance sheet accounts when it is obtained within six months of the balance sheet date.

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Definitions:

Growth Rate

Growth rate is a measure of the increase in size, number, value, or strength of a business, population, or other measurable entities, usually expressed as a percentage over a specific period of time.

Synergies

Synergies are the combined benefits achieved through mergers, acquisitions, or collaborations, leading to increased efficiency and productivity.

Beta

A measure of a stock's volatility in relation to the overall market.

Widely Held

Refers to stocks or securities that are owned by a large number of investors, often making the security more liquid and the company less prone to large shareholder influence.