CAF-8 · Chapter 7 · Question 5 of 10
When assessing the reliability of data from which an expectation is developed for analytical procedures, which of the following provides the highest level of reliability?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Information obtained from independent, reputable external sources, such as published industry averages.
Explanation
Data is generally more reliable when it is obtained from independent sources outside the entity. Furthermore, data produced under strong internal controls is more reliable than data produced under weak controls.
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