Which of the following factors is most important in determining the appropriations of audit evidence?
Correct answer: D. The reliability of audit evidence and its relevance in meeting the audit objective
- A. The independence of the source of evidence
- B. The objectivity and integrity of the auditor
- C. The quantity of audit evidence
- D. The reliability of audit evidence and its relevance in meeting the audit objective
Explanation
Audit evidence is evaluated primarily by its relevance to the audit objective and its reliability or persuasiveness. Quantity alone cannot compensate for evidence that is unreliable or irrelevant.
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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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