Determine which of the following is most correct statement regarding the reliability of audit evidence.
A)Information that is indirectly obtained from external sources is the most reliable audit evidence.
B)Reliability of audit evidence is dependent upon the evidence being subjective.
C)Reliability of evidence refers to the amount of evidence obtained.
D)If internal controls are effective,evidence obtained is more reliable than when the controls are not effective.

Question

Quizplus · Accepted Answer

When internal controls are effective, it provides greater assurance that the evidence obtained is accurate and reliable. Therefore, option D is the most correct statement regarding the reliability of audit evidence. Option A is incorrect because evidence obtained directly from external sources is more reliable than information that is indirectly obtained. Option B is incorrect because the reliability of evidence does not depend on its subjectivity or objectivity. Option C is incorrect because the reliability of evidence refers to its quality and not the amount obtained.

Determine Which of the Following Is Most Correct Statement Regarding