Which of the Following Statements Is Most Accurate Regarding Sufficient

question 34

Multiple Choice

Which of the following statements is most accurate regarding sufficient and appropriate documentation?

• A)Accounting estimates are not considered sufficient and appropriate documentation.
• B)Sufficient and appropriate documentation should include evidence that the audit working papers have been reviewed.
• C)If additional evidence is required to document significant findings or issues, the original evidence is not considered sufficient and appropriate and therefore should be deleted from the working papers.
• D)Audit documentation is the property of the client, and sufficient and appropriate copies should be retained by the auditor for at least five years.

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Definitions:

Deadweight Loss

The reduction in economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable.

Excise Tax

Excise tax is a tax imposed on specific goods, services, or activities, often included in the price of products like tobacco, alcohol, and gasoline, aimed at reducing consumption of these goods or generating revenue.

Music Downloads

Digital files of musical works that can be legally or illegally transferred from the Internet to a computer or mobile device.

Consumer Surplus

The discrepancy between the full amount consumers intend and have the means to pay for a good or service and the amount they genuinely pay.