Which of the Following Presumptions Does Not Relate to the Reliability

question 74

Multiple Choice

Which of the following presumptions does not relate to the reliability of audit evidence?

• A) The more effective the client's internal control, the more assurance it provides about the accounting data and financial statements.
• B) The auditors' opinion, to be economically useful, is formed within a reasonable time and based on evidence obtained at a reasonable cost.
• C) Evidence obtained from independent sources outside the entity is more reliable than evidence secured solely within the entity.
• D) The independent auditors' direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained indirectly.

---

Definitions:

Set of Equations

A collection of mathematical equations, often used to solve problems where multiple variables are involved.

Three Figure Accuracy

Refers to rounding numerical values to three significant figures for precision in calculations or reporting.

Pair of Equations

Two mathematical equations set up in relation to each other, often used to find the values of two unknown variables by solving them simultaneously.

Graphically

In a manner that uses diagrams, charts, maps, or other visual representations to explain or illustrate.