(A) When it constitutes entire population

(B) When it is enough to provide a basis for giving reasonable assurance regarding truthfulness

(C) When it is objective and relevant

(D) When auditor collects and evaluates it independently

(A) The reliability of audit evidence and its relevance in meeting the audit objective

(B) The objectivity and integrity of the auditor

(C) The quantity of audit evidence

(D) The independence of the source of evidence

(A) Randomly

(B) Disproportionately

(C) Directly

(D) Inversely

(A) May be eliminated for an account balance under certain conditions

(B) Are designed to discover significant subsequent events

(C) Will increase proportionately when the auditor decreases the assessed level of control risk

(D) May be test of transactions, test of balance and analytical procedures

(A) To be reliable, evidence should conclusive rather than persuasive

(B) Effective internal control system provides reliable audit evidence

(C) Evidence obtained from outside sources routed through the client

(D) All are correct.

(A) Bank statements obtained from the client

(B) Documents obtained by auditor from third parties directly.

(C) Carbon copies of sales invoices inspected by the auditor

(D) Computations made by the auditor

(A) Be included in the stock

(B) Not be included in the stock

(C) Not be checked by auditor

(D) None of the above

(A) cost

(B) Market price

(C) Cost or market price whichever is lower

(D) Cost less depreciation

(A) Kingston Cotton Mills case

(B) London Oil Storage Co. Case

(C) London and General Bank case

(D) None of the above

(A) Cost

(B) Market price

(C) Cost or Market price whichever is lower.

(D) Cost less depreciation.