Question

Audit evidence is considered to be high quality when it is both:

a. identifiable and measurable
b. relevant and reliable
c. timely and material
d. necessary and ample

Answer 1

Audit evidence is high quality when it is relevant and reliable because it directly relates to the audit criteria and can be depended upon to be true.

Step-by-step explanation:

Audit evidence is considered high quality if it possesses certain qualities that ensure its relevance and reliability to the auditor's findings. The correct answer to the question is option (b): relevant and reliable. Relevant evidence directly relates to the audit criteria being tested and can affect the evaluation of the financial statement elements. Reliable evidence is one upon which the auditor can depend to be true, due to its source, nature, and the auditor's direct knowledge.