Audit Evidence Is Usually Considered Sufficient When

question 33

Multiple Choice

Audit evidence is usually considered sufficient when

• A)It is reliable.
• B)There is enough quantity to afford a reasonable basis for an opinion on financial statements.
• C)It has the qualities of being relevant,objective,and free from unknown bias.
• D)It has been obtained through random selection methods.

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Definitions:

Book Value

The value of an asset as recorded on the balance sheet, calculated by deducting the accumulated depreciation or amortization from the asset's original cost.

Equity Method

An accounting technique used to record investments in associate companies, reflecting the investor's share of the earnings.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Net Income

The conclusive earnings of a firm after removing all financial outlays and tax obligations from its aggregate revenue.