Which of the Following Statements Relating to the Competence of Evidential

question 26

Multiple Choice

Which of the following statements relating to the competence of evidential matter is always true?

• A) Evidence from outside an enterprise is always reliable.
• B) Accounting data developed under satisfactory conditions of internal control are more relevant than data developed under unsatisfactory internal control conditions.
• C) Oral representations made by management are not reliable evidence.
• D) Evidence must be both reliable and relevant to be considered appropriate.

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Definitions:

Significance Level

A significance level is a threshold in hypothesis testing that determines the probability of rejecting the null hypothesis when it is actually true, often denoted by alpha.

Linearly Related

Describes two variables that change together at a constant rate, represented graphically as a straight line.

Significance Level

The probability of rejecting the null hypothesis when it is actually true, commonly denoted by alpha (α).

Linearly Related

It describes a relationship between two variables in which the change in one variable is directly proportional to the change in another variable.