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 meet both the criteria of relevance and reliability to be considered appropriate for use in audit procedures. Choices A, B, and C are all incorrect as evidence from outside an enterprise may be unreliable, accounting data developed under satisfactory internal control conditions is generally considered reliable, and oral representations made by management may be reliable depending on the circumstances surrounding their communication.

Which of the Following Statements Relating to the Competence of Evidential