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 are more relevant than data developed under unsatisfactory internal control conditions.
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 be both reliable and relevant to be considered appropriate. Option A is not always true as evidence from outside an enterprise can also be unreliable. Option B may not always hold true as accounting data developed under satisfactory conditions of internal control may still not be relevant to the audit objective. Option C is also not always true as oral representations made by management may be reliable if corroborated with other evidence.

Which of the Following Statements Relating to the Competence of Evidential