Which of the Following Presumptions Does Not Relate to the Appropriateness

question 9

Multiple Choice

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

• A)The more effective the internal control system, the more assurance it provides about the accounting data and financial statements.
• B)An auditor's 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 auditor's direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained indirectly.

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Definitions:

CPI

Consumer Price Index; a measure that examines the weighted average of prices of a basket of consumer goods and services, typically used as an indicator of inflation.

CPI

Short for Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Rookie Salary

The initial compensation package awarded to a professional athlete in their first year or season of play.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, typically used as an indicator of inflation.