Which of the following statements is correct?
A) A specific type of evidence is sufficient by itself to provide reliable evidence to satisfy any audit objective.
B) Since the auditor performs the analytical procedures, these will be competent evidence even if internal controls provide inaccurate data.
C) The effectiveness of the client's internal control has a significant effect on the competence of most types of evidence.
D) Both physical examination and mechanical accuracy are likely to be highly reliable if the internal control structure is ineffective.

Question

Quizplus · Accepted Answer

The effectiveness of the client's internal control has a significant effect on the competence of most types of evidence. This means that regardless of the type of evidence used, the reliability of the evidence is highly dependent on the effectiveness of the client's internal control system. Therefore, option C is the correct statement. Options A, B, and D are incorrect as they do not reflect the impact of the client's internal control system on the reliability of evidence.

Which of the Following Statements Is Correct