Question

Which of the following statements is true?

A) Evidence must be relevant to all of the audit objectives.
B) If evidence is subjective, it cannot be reliable.
C) Evidence obtained directly by the auditor may not be reliable if the auditor lacks the qualifications to evaluate the evidence.

Answer 1

The true statement is that audit evidence obtained directly by an auditor may not be reliable if the auditor lacks the qualifications to evaluate the evidence, stressing the importance of an auditor's qualifications in assessing the reliability and relevance of evidence.

Step-by-step explanation:

The statement that is true among the options provided is 'Evidence obtained directly by the auditor may not be reliable if the auditor lacks the qualifications to evaluate the evidence.' This statement recognizes the importance of the auditor's expertise in evaluating the reliability of the audit evidence. While direct evidence obtained by an auditor is often deemed more reliable, the auditor must have the necessary qualifications and skills to understand and interpret that evidence appropriately. The auditor's qualifications are crucial for ensuring the evidence's relevance and reliability concerning the audit objectives.