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:

Financing Activity

Transactions related to raising capital and repaying investors, including issuing stock, paying dividends, and borrowing funds.

Net Income

A company's overall earnings following the deduction of all costs and taxes from its gross income.

Fiscal Year

A twelve-month period used for accounting purposes and preparation of financial statements, which may not align with the calendar year.

Withdrawals

The act of taking out cash or other assets from a business by the owner for personal use.