Final answer:
The statement is true; inquiry is an audit evidence technique that involves obtaining oral information from the client through questions during an audit.
Step-by-step explanation:
The statement that the type of audit evidence known as inquiry requires the auditor to obtain oral information from the client in response to questions is true. Inquiry is an audit evidence-gathering technique that involves asking verbal questions to the management and staff within the entity being audited. Inquiries can range from formal interviews to casual conversations, but are typically seen as a starting point in gathering evidence. Follow-up meetings and additional interviews might be necessary to corroborate responses or delve deeper into particular issues.
In the context of an audit, the use of inquiry is crucial. It allows auditors to understand the client's perspective and gain insights that are not always apparent in written records. While inquiries alone may not be sufficient to form an audit opinion, they are an important part of the overall audit strategy and help to inform further audit procedures.