Which Broad Category of Corroborating Evidence Is the Least Persuasive

question 38

Multiple Choice

Which broad category of corroborating evidence is the least persuasive to an auditor?

• A)externally generated evidence held by the client
• B)internally generated evidence
• C)externally generated evidence sent directly to the auditor
• D)none of the above

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Definitions:

Pretax Proceeds

The amount of money generated from a sale or transaction before any taxes are deducted.

Working Capital

Working capital, rephrased from net working capital, indicates the liquidity available to a business for day-to-day operations, calculated as current assets minus current liabilities.

Net Working Capital

A measure of a company's short-term financial health, calculated as current assets minus current liabilities.

Inventory

The raw materials, work-in-process products, and finished goods that are considered a part of a business's assets that are ready or will be ready for sale.