Which of the Following Types of Audit Evidence Is the Most

question 70

Multiple Choice

Which of the following types of audit evidence is the most persuasive?

• A)Prenumbered internal purchase order forms.
• B)Auditee worksheets supporting cost allocations.
• C)Bank statements obtained from the auditee.
• D)Auditee personnel responses to auditor inquiries.

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Definitions:

Long-Run Adjustment

A process in which firms adjust their inputs and outputs to achieve the optimal level of production and efficiency over an extended period.

Farmer

An individual engaged in the activity of agriculture, aiming to produce crops and raise livestock for consumption or sale.

Calendar Time

The actual time measured by calendar days, weeks, months, or years, as opposed to other measures of time.