Which of the Following Statements Describes an Appropriate Relationship with Respect

question 8

Multiple Choice

Which of the following statements describes an appropriate relationship with respect to the reliability of audit evidence?

• A)Receiving confirmation from third parties as to the existence of securities is more reliable than the auditors' personal inspection of those securities.
• B)Verbal inquiries received from the client regarding sales made to customers are more reliable than sales invoices prepared by the client for its customers.
• C)A bank confirmation received directly by the auditor is more reliable than a bank confirmation initially received by the client and forwarded to the auditor.
• D)Evidence drawn from a document prepared by the client is more reliable than evidence drawn from a document prepared by an external party that is forwarded to the auditor by the client.

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Definitions:

Taxes

Mandatory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Utilities

Services such as water, electricity, gas, and sewerage provided by public or private companies.

Y-Coord.

A term used to represent the vertical coordinate in a two-dimensional space, often used in mathematics and mapping to indicate vertical position.

Yearly Demand

Yearly demand is the total quantity of a product or service that consumers are willing and able to purchase over the period of one year, influenced by factors such as price, consumer preferences, and market conditions.