The Reliability of Audit Evidence Is a Measure of the Quality

question 27

True/False

The reliability of audit evidence is a measure of the quality of the underlying evidence and is influenced by risk,potential management bias associated with the evidence,and the quality of the internal control system underlying the preparation of the evidence.

---

Definitions:

Depreciation Expenses

The systematic allocation of the cost of a tangible asset over its useful life.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Liabilities of a firm that are due to be paid to creditors within a short period of time, usually within a year.

Net Income

The total revenue minus total expenses, indicating the profit made by a business over a period.