The competence of evidence available to an auditor is least likely to be affected bySelect one:a.The relevance of such evidence to the financial statement assertion being investigated.b.The relationship of the preparer of such evidence to the entity being audited.c.The sampling method employed by the auditor to obtain a sample of such evidence.d.The timeliness of such audit evidence.
Question
The competence of evidence available to an auditor is least likely to be affected bySelect one:a.The relevance of such evidence to the financial statement assertion being investigated.b.The relationship of the preparer of such evidence to the entity being audited.c.The sampling method employed by the auditor to obtain a sample of such evidence.d.The timeliness of such audit evidence.
Solution
The correct answer is c. The sampling method employed by the auditor to obtain a sample of such evidence.
Here's why:
a. The relevance of such evidence to the financial statement assertion being investigated: This directly affects the competence of the evidence. If the evidence is not relevant to the assertion being investigated, it is not competent.
b. The relationship of the preparer of such evidence to the entity being audited: This also affects the competence of the evidence. If the preparer of the evidence has a close relationship with the entity being audited, there may be bias, which reduces the competence of the evidence.
c. The sampling method employed by the auditor to obtain a sample of such evidence: While the sampling method can affect the sufficiency of the evidence (i.e., whether there is enough evidence), it does not typically affect the competence of the evidence (i.e., the quality of the evidence).
d. The timeliness of such audit evidence: This can affect the competence of the evidence. If the evidence is outdated, it may not be reliable or relevant, reducing its competence.
Similar Questions
Each time an auditor draws a conclusion based on evidence from a sample, an additional risk, sampling risk, is introduced. An example of sampling risk isSelect one:a.Properly applying an improper audit procedure to sample data.b.Drawing an erroneous conclusion from sample data.c.Projecting the results of sampling beyond the population tested.d.Improperly applying a proper audit procedure to sample data.
When designing and performing audit procedures, the auditor shall consider the relevance and reliability of the information to be used as audit evidence.Select one:TrueFalse
Working papers that record the procedures used by the auditor to gather evidence should beSelect one:a.Viewed as the connecting link between the books of accounts and the financial statements.b.Designed to meet the circumstances of the particular engagement.c.Destroyed when the audited entity ceases to be a client.d.Considered the primary support for the financial statements being audited.
Audit sampling enables the auditor to obtain and evaluate audit evidence about some characteristic of the items selected in order to form or assist in forming a conclusion concerning the population from which the sample is drawn.Select one:TrueFalse
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
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