Discussion
With respect to audit evidence, which of the following statement/s is/are correct
Statement-1: Audit evidence is defined as the information used by the auditor in arriving at the conclusions on which the auditor's opinion is based.
Statement-2: Audit evidence includes both information contained in the accounting records underlying the financial statements and other information
Answer: C
Both statements are correct. Audit evidence is the information the auditor uses to arrive at the conclusions on which the audit opinion is based, which is statement-1. It includes both the information in the accounting records that underlie the financial statements and other information, such as confirmations, inspection and inquiry, which is statement-2. As both statements agree with the auditing standard on audit evidence, the answer is that both are correct.
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development