Which of the Following Presumptions Is Correct About the Reliability

question 37

Multiple Choice

Which of the following presumptions is correct about the reliability of audit evidence?

• A)Information obtained indirectly from outside sources is the most reliable audit evidence.
• B)To be reliable, audit evidence should be convincing rather than persuasive.
• C)Reliability of audit evidence refers to the amount of corroborative evidence obtained.
• D)An effective internal control system provides more reliable audit evidence.

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Definitions:

External Benefit

A positive effect experienced by a third party due to an economic transaction they were not directly involved in.

Copper Mining

The process of extracting copper from the Earth, which is a crucial resource for electrical wiring, plumbing, and various alloys.

Water Users

Individuals or groups that utilize water resources for purposes such as agriculture, industry, or domestic use.

Marginal Social Benefit

The incremental value for society resulting from the creation of an additional unit of a good or service.