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

Question

Quizplus · Accepted Answer

Quality of audit evidence is determined by both relevance and reliability. Evidence gathered after year-end can be just as relevant and reliable as evidence gathered prior to year-end depending on the circumstances. Internal control strength can impact the reliability of evidence, with stronger internal controls providing higher quality evidence. Sufficiency and appropriateness of evidence are both important in evaluating quality, with neither being of greater importance than the other. Therefore, choice C is the only true statement.

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