Which of the following statements regarding inspection is not correct?
A) Inspection includes examining client records such as general ledgers and supporting journals.
B) External documents are considered more reliable than internal documents.
C) Internal documents are documents that are generated within the company and used to communicate with external parties.
D) External documents are documents that are generated outside of the company and are used to communicate the results of a transaction.

Question

Quizplus · Accepted Answer

Internal documents are generated and used within the company, not primarily for communication with external parties. External communication might use different types of documents.

Which of the Following Statements Regarding Inspection Is Not Correct