What Is the Strongest Form of Audit Evidence

question 14

Multiple Choice

What is the strongest form of audit evidence?

• A) The auditor's direct personal knowledge.
• B) Evidence gathered directly from independent third parties.
• C) Evidence produced by independent third parties.
• D) Comprehensive analysis performed by the auditor.

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Definitions:

Excess Reserves

The amount of reserves that a bank holds in excess of the reserve requirements set by a central bank.

Money Expansion

refers to an increase in the money supply, which can result from actions by the central bank or financial institutions that impact lending and liquidity.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors or internal controls.

Private Individuals

Persons or entities that are not part of the government or public sector, typically referring to ordinary citizens or privately owned entities.