Audit Evidence Can Come in Different Forms with Different Degrees

question 20

Multiple Choice

Audit evidence can come in different forms with different degrees of persuasiveness.Which of the following is the least persuasive type of evidence?

• A)Documents mailed by outsiders to the auditor.
• B)Correspondence between the auditor and suppliers.
• C)Sales invoices inspected by the auditor.
• D)Calculations made by the auditor.

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Definitions:

Unit Product Costs

The total cost (fixed and variable) divided by the number of units produced, representing the cost per each unit manufactured.

Grinding Machine Time

The amount of time a grinding machine is used in the manufacturing process, often a basis for allocating production costs.

Intermediate Calculations

The steps or computations performed as part of a larger problem-solving process, often leading towards final results or conclusions.

Production Facility

A location equipped with machinery and tools used in the manufacturing or production of goods.