Introduction: Audit evidence is the proof that an auditor tries to seek from an organization in order to claim that the assertions related to financial transactions are correct.
Whether the given statement is true.
Answer to Problem 1CYBK
The given statement is true.
Explanation of Solution
The quality and relevance of an audit evidence is measured under appropriateness of an audit evidence. The audit evidence is said to be relevant when it validates the assertions claims by the management. The auditor checks whether the evidence is convincing, if the evidence is found convincing then it is said to a reliable audit evidence.
Thus, the appropriateness of an audit evidence measures both relevance and reliability.
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Chapter 6 Solutions
MindTap Accounting, 1 term (6 months) Printed Access Card for Johnstone/Gramling/Rittenberg's Auditing: A Risk Based-Approach, 11th
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