Which of the Following Procedures Would Provide the Most Reliable

question 120

Multiple Choice

Which of the following procedures would provide the most reliable audit evidence?

• A) Inquiries of the client's internal audit staff.
• B) Inspection of prenumbered client purchase orders filed in the vouchers payable department.
• C) Inspection of vendor sales invoices received from client personnel.
• D) Inspection of bank statements obtained directly from the client's financial institution.

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Definitions:

Antilock Brakes

A safety system in vehicles that prevents the wheels from locking up and ensures the driver maintains steering control during an emergency braking situation.

Less Carefully

Pertaining to actions or tasks performed with a lower degree of diligence or attentiveness.

Moral Hazard

The risk that one party to a contract can change their behavior to the detriment of another party, knowing that they won't have to bear the full consequences of their actions.

Piece-rate Garment Worker

A worker in the garment industry who is paid for each piece produced, rather than receiving an hourly wage.