Which of the following is normally the most reliable source of audit evidence?
Correct answer: B. Suppliers' statements
- A. Internal audit
- B. Suppliers' statements
- C. Board minutes
- D. Analytical reviewHire An Accountant
Explanation
Suppliers' statements are external documentary evidence obtained from an independent source, so they are generally more reliable than internal audit information, board minutes, or analytical review.
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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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