CAF-8 · Chapter 4 · Question 1 of 10
According to ISA 500, audit evidence is considered more reliable when it is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Obtained directly by the auditor from independent external sources.
Explanation
Evidence is generally more reliable when it is obtained from independent external sources, generated directly by the auditor, and exists in documentary or original form.
More Evidence and Sampling MCQs
- Q3What is the definition of 'Sampling Risk'?
- Q4To improve audit efficiency, an auditor divides the trade receivables population into three groups based on balance sizes (High, Medium…
- Q5Under what condition is it appropriate for an auditor to use 'Negative Confirmations' for trade receivables?
- Q6If an auditor is unable to obtain a response to a positive external confirmation request from a major debtor, what is the required next…
- Q7Within the context of sampling, what does 'Tolerable Misstatement' refer to?