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.

Recognize and differentiate between duress, undue influence, and non est factum in contract law.

Identify the legal remedies available for victims of misrepresentation and how these remedies vary depending on the type of misrepresentation.

Comprehend the principles of contract rescission and the specific conditions under which it is available or not.

Understand the concept of privity of contract and its implications for third parties.

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Definitions:

Technology on Organizations

The impact or influence that the adoption of technology has on the structure, operations, and culture of organizations.

Automated Services

Services operated or delivered by automated systems or machines, reducing the need for human intervention.

Contract Employment

A form of employment where the employee is hired for a specified duration or for a specific project with a defined end date.

Ethical Practices

Behaviors and decisions within a business context that are guided by principles and values considered to be morally right and fair.