Which of the Following Presumptions Is Correct About the Reliability

question 53

Multiple Choice

Which of the following presumptions is correct about the reliability of audit evidence?

• A)Information obtained indirectly from outside sources is the most reliable audit evidence.
• B)To be reliable, audit evidence should be convincing rather than persuasive.
• C)Reliability of audit evidence refers to the amount of corroborative evidence obtained.
• D)An effective internal control system provides more reliable audit evidence than does an ineffective internal control system.

---

Definitions:

Manufacturing Costs

Expenses directly related to the production of goods, including materials, labor, and overhead.

Work in Process

Inventory items that are partially completed goods, still undergoing manufacturing processes.

Materials Costs

The total expenses incurred for the materials used in the production process or in the provision of services.

Ending Work in Process

The value of goods that are in the process of being manufactured but are not yet complete at the end of an accounting period.