MULTIPLE CHOICE QUESTIONS FROM CPA EXAMINATIONS
7-23 (OBJECTIVES 7-3, 7-4) The following questions concern persuasiveness of evidence.
Choose the best response.
a. Which of the following types of documentary evidence should the auditor consider
to be the most reliable?
(1) Confirmation of an account payable balance mailed by and returned directly to
the auditor
(2) A sales invoice issued by the client and supported by a delivery receipt from an
outside trucker
(3) A check, issued by the company and bearing the payee’s endorsement, that is in-
cluded with the bank statements mailed directly to the auditor
(4) An audit schedule prepared by the client’s controller and reviewed by the client’s
treasurer
b. Audit evidence can come in different forms with different degrees of persuasiveness.
Which of the following is the least persuasive type of evidence?
(1) Vendor’s invoice
(2) Bank statement obtained from the client
(3) Prenumbered sales invoices
(4) Computations made by the auditor
c. Which of the following presumptions is correct about the reliability of audit
evidence?
(1) Information obtained indirectly from outside sources is the most reliable audit
evidence.
(2) To be reliable, audit evidence should be convincing rather than merely persuasive.
(3) Reliability of audit evidence refers to the amount of corroborative evidence
obtained.
(4) Effective internal control provides more assurance about the reliability of audit
evidence.
