Which of the following statements is true with respect to the persuasiveness of audit evidence?
A) Persuasiveness is related to the relevance of evidence but not the reliability of evidence.
B) Evidence is considered more persuasive when gathered prior to year-end than following year-end.
C) Evidence obtained under environments of stronger internal control is more persuasive than evidence obtained under environments of weaker internal control.
D) In evaluating persuasiveness, sufficiency of evidence is of more importance than appropriateness of evidence.

Question

Quizplus · Accepted Answer

Evidence obtained under environments of stronger internal control is more persuasive than evidence obtained under environments of weaker internal control. This is because stronger internal controls provide greater assurance that the evidence is reliable, accurate, and complete. While both relevance and reliability of evidence are important for persuasiveness, the reliability is a critical factor that determines the persuasiveness of evidence. Pre-year-end or post-year-end timing is also not a factor to determine the persuasiveness of evidence. In addition, both sufficiency and appropriateness of evidence are significant but appropriateness is more important than sufficiency, as inadequate or irrelevant evidence may lead to erroneous audit conclusion.

Which of the Following Statements Is True with Respect to the Persuasiveness