The Following Statements Were Made in a Discussion of Audit

question 36

Multiple Choice

The following statements were made in a discussion of audit evidence between two auditors.Which statement is not valid concerning audit evidence?

• A)'I am seldom convinced beyond all doubt with respect to all aspects of the reports being examined.'
• B)'I would not undertake that procedure because at best the results would only be persuasive and I'm looking for convincing evidence.'
• C)'I evaluate the degree of risk involved in deciding the kind of evidence I will gather.'
• D)'I evaluate the usefulness of the evidence I can obtain against the cost of obtaining it.'

---

Definitions:

Forward Contract

A financial derivative instrument between two parties to buy or sell an asset at a specified future time at a price agreed upon today.

Settlement Date

The date on which a trade is finalized and the buyer must make payment and the seller deliver the asset.

Forward Rate

Refers to the agreed exchange rate for a currency transaction that will occur at a future date.

Exchange Gain

A profit resulting from holding foreign currencies that appreciate against the home currency.