Which of the Following Factors Is Most Important in Determining

question 58

Multiple Choice

Which of the following factors is most important in determining the appropriateness of audit evidence?

• A)The reliability of the evidence in meeting the audit objective.
• B)The sampling method used by the auditor.
• C)The quantity of the evidence obtained.
• D)The objectivity of the auditor gathering the evidence.

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Definitions:

Oligopolistic Industries

Sectors characterized by a small number of large firms that have significant control over market prices and competition.

Differentiated Products

Goods or services that are distinguished from similar products by characteristics like quality, design, and features.

Standardized Products

Goods that are made to specific standards to ensure consistency and uniformity, facilitating mass production and interchangeability across different brands or producers.

Homogeneous Oligopolists

A market structure where a few firms offer products or services that are similar in nature and hence are close substitutes for each other.