Evidence Is Generally Considered Appropriate When

question 62

Multiple Choice

Evidence is generally considered appropriate when:

• A) it has been obtained by random selection.
• B) there is enough of it to afford a reasonable basis for an opinion on financial statements.
• C) it has the qualities of being relevant, objective, and free from known bias.
• D) it consists of written statements made by managers of the enterprise under audit.

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Definitions:

Taxed Twice

Refers to a situation where the same income or financial transaction is subject to taxation in two different instances or under two different tax jurisdictions.

Equity

Fairness or justice in the way people are treated within the economy, often relating to the distribution of wealth.

Efficiency

The ability to maximize output with a given set of inputs, or to minimize inputs used for producing a given output.

Personal Income Taxes

Taxes levied on the income of individuals, affecting personal earnings.