Evidence obtained directly by the auditor is more competent than information obtained indirectly. Which of the following is NOT an example of the auditor's direct knowledge?
A) Inquiry
B) Computation
C) Physical examination
D) Observation

Question

Quizplus · Accepted Answer

Inquiry is an example of obtaining information indirectly as it relies on obtaining information from a third party or document. Computation, physical examination, and observation are examples of direct knowledge as they involve firsthand examination by the auditor.

Evidence Obtained Directly by the Auditor Is More Competent Than