In auditing, what does the appropriateness of audit evidence primarily refer to?
Correct answer: B. The relevance and reliability of evidence
- A. The quantity of evidence collected
- B. The relevance and reliability of evidence
- C. The cost of obtaining the evidence
- D. The time spent examining the evidence
Explanation
Appropriateness concerns the quality of audit evidence, especially its relevance and reliability. Sufficiency, in contrast, concerns the quantity of evidence obtained.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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