Which of the following statements is generally correct about the appropriateness of audit evidence?
A) Auditors' direct personal knowledge obtained through observation and inspection is more persuasive than information obtained indirectly from independent outside sources.
B) To be reliable, audit evidence must be either valid or relevant but need not be both.
C) Client accounting data alone may be considered sufficient appropriate audit evidence to issue an unqualified opinion on client financial statements.
D) Appropriateness of audit evidence refers to the amount of corroborative evidence to be obtained.

Question

Quizplus · Accepted Answer

Auditors' direct personal knowledge obtained through observation and inspection is generally considered to be more persuasive than information obtained indirectly from independent outside sources. This is because the auditor can directly observe the evidence and assess its reliability, whereas independent outside sources may be less reliable or subject to bias. Validity and relevance are both important criteria for determining the appropriateness of audit evidence, and client accounting data alone is unlikely to be sufficient for issuing an unqualified opinion on client financial statements. Finally, appropriateness of evidence refers to the quality, relevance, and reliability of the evidence obtained, not the amount of evidence obtained.

Which of the Following Statements Is Generally Correct About the Appropriateness