Which of the following statements is, generally, correct about the reliability of audit evidence?
Correct answer: B. Effective internal control system provides reliable audit evidence
- A. To be reliable, evidence should conclusive rather than persuasive
- B. Effective internal control system provides reliable audit evidence
- C. Evidence obtained from outside sources routed through the client
- D. All are correct. Hire An Accountant
Explanation
Reliable evidence is more likely when it comes from effective controls and dependable sources. Evidence obtained externally but routed through the client loses some reliability, and audit evidence is persuasive rather than absolutely conclusive.
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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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