Which of the following is a correct statement regarding audit evidence?
A) A large sample of evidence provided by an independent party is always considered persuasive evidence.
B) A small sample of only one or two pieces of highly appropriate evidence is always considered persuasive evidence.
C) The auditor must obtain a sufficient amount of relevant and reliable evidence to form an opinion on the fairness of the financial statements.
D) Evidence is usually more reliable for balance sheet accounts when it is obtained within six months of the balance sheet date.

Question

Quizplus · Accepted Answer

The auditor must obtain a sufficient amount of relevant and reliable evidence to form an opinion on the fairness of the financial statements. This means that the evidence must be both relevant (pertinent to the audit objective) and reliable (dependable and verifiable). The amount of evidence required will vary depending on the size and complexity of the entity being audited, but the auditor must always obtain a sufficient amount to support their opinion. Choices A, B, and D are not necessarily true in all situations and are therefore incorrect.

Which of the Following Is a Correct Statement Regarding Audit