Rank the Following Forms of Audit Evidence from Most to Least

question 16

Multiple Choice

Rank the following forms of audit evidence from most to least reliable: observation,inquiry,confirmation,and external-internal documentation

• A)External-internal documentation,observation,confirmation,and inquiry.
• B)Confirmation,external-internal documentation,observation,and inquiry.
• C)External-internal documentation,confirmation,inquiry,and observation.
• D)Confirmation,internal-external documentation,inquiry,and observation.

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Definitions:

Production Possibilities Frontier

A graph that shows the highest production potential for two products, based on available resources and various factors.

Means of Production

The resources—including land, labor, capital, and technology—used to produce goods and services in an economy.

Capital

Wealth in the form of money or assets, used in the production of more wealth.

Depression

An extended period of significant decline in economic activity across an economy, characterized by high unemployment, low consumer spending, and reduced industrial output.