When electronic data is obtained from an outside entity, _______.
A)the auditor should assume that it is valid and free from error
B)the auditor should assume the data is inaccurate and unreliable
C)the auditor should consider the reliability of the data.
D)it should be referred to management for vetting, before being submitted to the auditor for analysis

Question

Quizplus · Accepted Answer

The auditor should consider the reliability of the data obtained from an outside entity before using it for analysis. While the data may be relevant and useful, it is important to evaluate its accuracy and credibility before relying on it for audit purposes. Therefore, the best choice is C.

When Electronic Data Is Obtained from an Outside Entity, _______