Which of the following presumptions is correct about the reliability of audit evidence?
A)Information obtained indirectly from outside sources is the most reliable audit evidence.
B)To be reliable, audit evidence should be convincing rather than persuasive.
C)Reliability of audit evidence refers to the amount of corroborative evidence obtained.
D)An effective internal control system provides more reliable audit evidence.

Question

Quizplus · Accepted Answer

An effective internal control system provides more reliable audit evidence as it reduces the risk of errors and fraud, and ensures that financial information is accurate and complete. Direct and firsthand evidence is generally more reliable than indirect or hearsay evidence. The persuasiveness of evidence relates to the degree to which it proves or disproves a particular assertion, while reliability refers to the dependability of the evidence. Corroboration of evidence enhances its reliability, but it is not the sole determinant of reliability. Therefore, options A, B, and C are incorrect presumptions about the reliability of audit evidence.

Which of the Following Presumptions Is Correct About the Reliability