Question

Internal evidence: a) originates outside of the client's system but has been received and processed by the client. b) consists of representations made by the client's officers, directors, owners and employees. c) is obtained directly from third parties independent of the client. d) consists of documents that are produced, used and stored within the client's internal processes and systems.

Answer 1

d) consists of documents that are produced, used and stored within the client's internal processes and systems.

Step-by-step explanation:

Internal evidence is evidence that is kept inside the business organization. It includes all important matters, discussions, plans, policies, procedures that applied or apply in the future.

The financial statement of a client is internal evidence. Based on the financial statements, the auditor can give the qualified (fraud detected) or unqualified report (true and fair).

So, option d is correct