Determine which of the following is most correct regarding the reliab O Relatability of audit evidence is dependent upon the evidence being subject O Information that is indirectly obtained from external sources is the most reli In internal controls are effective, evidence obtained is more relatable than w Reliability of evidence refers to the amount of evidence obtained.

Determine which of the following is most correct regarding the reliab O Relatability of audit evidence is dependent upon the evidence being subject O Information that is indirectly obtained from external sources is the most reli In internal controls are effective, evidence obtained is more relatable than w Reliability of evidence refers to the amount of evidence obtained.

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter6: A Framework For Audit Evidence

Section: Chapter Questions

Problem 24MCQ

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Question

Determine which of the following is most correct regarding the reliabili
O Relatability of audit evidence is dependent upon the evidence being subjecti
O Information that is indirectly obtained from external sources is the most relia
In internal controls are effective, evidence obtained is more relatable than wh
D Reliability of evidence refers to the amount of evidence obtained.

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Determine which of the following is most correct statement regarding the reliability of audit evidence. Select one: a. Reliability of audit evidence is dependent upon the evidence being subjective b. Reliability of evidence refers to the amount of evidence obtained. c. If internal controls are effective, evidence obtained is more reliable than when the controls are not effective. d. Information that is indirectly obtained from external sources is the most reliable audit evidence
Which of the following statements about audit evidence is correct? Group of answer choices There should be a one-to-one relationship between audit objective and audit procedure. Audit evidence is more persuasive when items of evidence from different sources or of different nature are consistent Sufficiency is the measure of the quality of audit evidence and its relevance to a particular assertion and its reliability Appropriateness is the measure of the quantity of audit evidence
Explain the factors that influence the reliability of audit evidence.
Which of the following statements is correct regarding detection risk and the audit risk model? OA. The two components of detection risk are test of details risk and inherent risk. B. Detection risk is equal to risk of material misstatement divided by audit risk. OC. There is an inverse relationship between the risk of material misstatement and detection risk. OD. There is a direct relationship between control risk and detection risk.
How does the quality of audit evidence vary depending on who has provided it?
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what are releveant audit evidence
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A.“It is the auditors’responsibility to gather sufficient appropriate evidence to reachtheir opinion. Discuss the above statement by explaining the differences between the evidence’s sufficiency and appropriateness. Your answer should include a discussion of two types of audit evidence.
Generally accepted auditing standards (the performance principle) require auditors to gather sufficient appropriate evidence on which to base an opinion.Required:a. Briefly define the characteristics “sufficient” and “appropriate” as they relate to audit evidence.b. What are relevance and reliability (as they relate to audit evidence)? How do these concepts relate to the auditors’ requirement to gather sufficient appropriate evidence?c. How does the source of evidence affect its reliability?d. How does the effectiveness of the entity’s internal control affect the sufficiency and appropriateness of evidence gathered by auditors?