Which of the following is the most accurate statement regarding audit evidence?
A)Audit evidence gathered by an auditor from outside an enterprise is 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 valid evidence.
D)The auditor must obtain sufficient appropriate audit evidence.

Question

Quizplus · Accepted Answer

The most accurate statement regarding audit evidence is that the auditor must obtain sufficient appropriate audit evidence. This means that the auditor needs to gather enough evidence to support their opinion on the financial statements, and that evidence must be appropriate and reliable. Option A is not necessarily true as audit evidence gathered from outside the enterprise may not always be reliable. Option B is not entirely accurate as data developed under unsatisfactory internal control conditions can still be relevant, but may require more audit procedures to ensure their accuracy. Option C is accurate as oral representations made by management are considered to be weak evidence and require corroboration with other evidence.

Which of the Following Is the Most Accurate Statement Regarding