Which of the following statements relating to audit evidence is the most accurate statement?
A) Audit evidence gathered by an auditor from outside an enterprise is reliable.
B) Accounting data developed under satisfactory conditions of internal control are more relevant than data developed under unsatisfactory internal control conditions.
C) Oral representations made by management are not valid evidence.
D) The auditor must obtain sufficient appropriate audit evidence.

Question

Quizplus · Accepted Answer

The principle of sufficiency and appropriateness of audit evidence states that the auditor must obtain sufficient and appropriate audit evidence to support the opinion expressed in the audit report. Option A is not always true as external evidence can also be unreliable. Option B is partially true as accounting data developed under satisfactory conditions of internal control are more reliable, but relevance needs to be determined based on the audit objective. Option C is not true as oral representations made by management can be valid evidence, but need to be corroborated with other evidence.

Which of the Following Statements Relating to Audit Evidence Is