Which of the Following Statements Describes an Appropriate Relationship with Respect

question 8

Multiple Choice

Which of the following statements describes an appropriate relationship with respect to the reliability of audit evidence?

• A)Receiving confirmation from third parties as to the existence of securities is more reliable than the auditors' personal inspection of those securities.
• B)Verbal inquiries received from the client regarding sales made to customers are more reliable than sales invoices prepared by the client for its customers.
• C)A bank confirmation received directly by the auditor is more reliable than a bank confirmation initially received by the client and forwarded to the auditor.
• D)Evidence drawn from a document prepared by the client is more reliable than evidence drawn from a document prepared by an external party that is forwarded to the auditor by the client.

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Definitions:

Seasonal Additive Model

A time series forecasting technique that adds seasonal effects to predict future values.

Double Moving Average Model

A method used in time series analysis and forecasting that involves taking averages of averages to smooth data series and detect trends.

Trend

The general direction in which something is developing or changing over time.

Seasonal Effect

Variations in data or phenomena that occur at specific regular intervals within a year, attributable to the changing seasons.