Which of the Following Statements Concerning Evidence Is Correct

question 45

Multiple Choice

Which of the following statements concerning evidence is correct?

• A)Appropriate evidence supporting management's assertions must be convincing rather than merely persuasive.
• B)A client's accounting data cannot be considered sufficient audit evidence to support the financial report.
• C)The cost of obtaining evidence is not an important consideration to an auditor in deciding what evidence should be obtained.
• D)Effective internal control contributes little to the reliability of the evidence created within the entity.

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Definitions:

Efficiently

Pertains to performing or operating in the best possible manner with the least waste of time and effort.

Resources

Various means or inputs (such as labor, capital, land) used in the production of goods and services.

Efficiency

The extent to which resources are used in the most productive way possible to achieve maximum output or outcomes.

Opportunity Costs

The cost of an alternative that must be forgone in order to pursue a certain action or the benefits you miss out on when choosing one alternative over another.