Which of the following factors is most important in determining the appropriations of audit evidence? A. The quantity of audit evidence B. The reliability of audit evidence and its relevance in meeting the audit objective C. The objectivity and integrity of the auditor D. The independence of the source of evidence
Question
Which of the following factors is most important in determining the appropriations of audit evidence? A. The quantity of audit evidence B. The reliability of audit evidence and its relevance in meeting the audit objective C. The objectivity and integrity of the auditor D. The independence of the source of evidence
Solution
The most important factor in determining the appropriations of audit evidence is B. The reliability of audit evidence and its relevance in meeting the audit objective.
Here's why:
A. The quantity of audit evidence: While quantity is important, it is not as crucial as the quality, relevance, and reliability of the evidence.
B. The reliability of audit evidence and its relevance in meeting the audit objective: This is the most important factor. Reliable and relevant evidence is crucial for an accurate audit. The evidence must be reliable (i.e., it comes from a trustworthy source and is not fraudulent or misleading) and relevant (i.e., it directly relates to the audit objective).
C. The objectivity and integrity of the auditor: While these are important qualities for an auditor to have, they do not directly determine the appropriateness of audit evidence.
D. The independence of the source of evidence: While independence can enhance the reliability of evidence, it is not the most important factor. Even evidence from a non-independent source can be appropriate if it is reliable and relevant.
Similar Questions
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