Evidence is generally considered appropriate when:
A) it has been obtained by random selection.
B) there is enough of it to afford a reasonable basis for an opinion on financial statements.
C) it has the qualities of being relevant, objective, and free from known bias.
D) it consists of written statements made by managers of the enterprise under audit.

Question

Quizplus · Accepted Answer

Evidence must be relevant to the matter being audited, objective in nature, and not influenced by any known bias. Random selection (A) is not necessary for evidence to be appropriate. The amount of evidence (B) required for an opinion can vary depending on the circumstances. Written statements by managers (D) can be useful evidence but not the only type of evidence and can also be biased.

Evidence Is Generally Considered Appropriate When