Which of the following is a true statement about an auditor's evaluation of an accounting system?
A) If a company has a haphazard accounting system then the auditor has greater confidence that the financial statements are reliable.
B) If a company has an efficient and orderly accounting system then the auditor has greater confidence that the financial statements are reliable.
C) If a company has an efficient and orderly accounting system then the auditor must do more detailed work to verify that the financial statements are reliable.
D) None of these are correct.
Correct Answer:
Verified
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