Which of the Following Statements Relating to the Appropriateness of Audit

question 43

Multiple Choice

Which of the following statements relating to the appropriateness of audit evidence is always true?

• A)Evidence gathered by an auditor from outside an entity is reliable.
• B)Accounting data developed under a satisfactory internal control system are more relevant than data developed under unsatisfactory internal control conditions.
• C)Oral representations made by management are not valid evidence.
• D)Evidence gathered by auditors must be both reliable and relevant to be considered appropriate.

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Definitions:

Tenements

Multi-family residential buildings, often overcrowded and poorly maintained, historically associated with the working class and immigrant populations in urban areas.

Multi-Family Triple-Deckers

A type of residential building common in New England, featuring three stacked apartments, usually with one family per floor.

Townhouses

A type of terraced housing with multiple floors, sharing one or two walls with adjacent properties, usually found in urban areas.

Apartments

Apartments are individual units within a larger residential building or complex, offering living space for rent or purchase, typically including amenities such as utilities and maintenance services.