Which of the following statements relating to the competence of evidential matter is always true?
A) Evidence from outside an enterprise is always reliable.
B) Accounting data developed under satisfactory conditions of internal control is not reliable.
C) Oral representations made by management are not reliable evidence.
D) Evidence must be both reliable and relevant to be considered appropriate.

Question

Quizplus · Accepted Answer

Evidence must be both reliable and relevant to be considered appropriate. Option A is not always true as evidence from outside an enterprise may not always be reliable. Option B is not true as accounting data developed under satisfactory conditions of internal control is generally considered reliable. Option C is also not true as oral representations made by management can be reliable evidence if they are supported by other evidence.

Which of the Following Statements Relating to the Competence of Evidential