Auditor provides his opinion on the basis of the conclusion drawn from the audit evidences obtained during the process of the audit. Some audit evidences are received from the third party and some from the management. To choose: The assumption that is least relatable to the reliability of audit evidences.

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Chapter 5, Problem 5.20MCQ

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Concept Introduction:Auditor provides his opinion on the basis of the conclusion drawn from the audit evidences obtained during the process of the audit. Some audit evidences are received from the third party and some from the management.

To choose: The assumption that is least relatable to the reliability of audit evidences.

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Which of the following presumptions does NOT relate to the reliability of evidence? A. the more effective the internal control structure, the more assurance it provides about the accounting data and financial statements. B.an auditor's opinion, to be economically useful, is formed within reasonable time and based on evidence obtained at a reasonable cost. C. evidence obtained from independent sourcesoutside the entity is more persuasive than evidence secured solely within the entity. D. the independent auditor's direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained indirectly.

Which of the following statements is correct about the reliability of audit evidence? a.Sufficiency of evidence refers only to the quality of evidence obtained. b.Evidence obtained from one source only is more reliable than evidence obtained from multiple sources. c.Effective controls over financial reporting provides more assurance on the reliability of internally generated documents. d.Information obtained orally is the most reliable evidence.

Which of the following statements is not a correct statement regarding audit evidence? Select one: a. External evidence, such as communications from banks, is generally regarded as more reliable than answers obtained from inquiries of the client b. Documents that originate outside the company are considered more reliable than those that originate within the client's organization. c. Evidence obtained from an independent source outside the client organization is more reliable than that obtained from within. d. Documentary evidence is more reliable when it is received by the auditor indirectly rather than directly.