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.

---

Definitions:

Internal Validation

The process of reviewing and assessing the internal procedures, controls, and operations of an organization to ensure they are effective and in line with set standards or goals.

Supply Savings

The reduction in costs achieved through efficient supply management practices, including negotiation, strategic sourcing, and procurement efficiencies.

Market Changes

Refers to the fluctuations and transformations in the dynamics of a market, influenced by factors like consumer behavior, economic policies, and technological advancements.

Technology Changes

Refers to the process of adopting new and improved technologies, often leading to innovation and transformation in various sectors.