Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which type of evidence provides the highest level of assurance in an attestation engagement?

Evidence obtained directly by the auditor, such as physical inspection

Evidence obtained from prior period audit reports

Oral representations made by management

Evidence obtained from internal documents prepared by the client

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Verified step by step guidance

Understand the context of the question: In an attestation engagement, the auditor evaluates evidence to provide assurance on the subject matter. The quality of evidence is critical, and it is assessed based on its reliability and relevance.

Recognize the hierarchy of evidence reliability: Evidence obtained directly by the auditor is generally considered the most reliable because it is less prone to bias or manipulation. Examples include physical inspection, observation, and recalculation.

Evaluate the other options: Evidence from prior period audit reports is less reliable because it is historical and may not reflect the current situation. Oral representations made by management are the least reliable because they are not verifiable. Internal documents prepared by the client are more reliable than oral representations but less reliable than evidence obtained directly by the auditor.

Focus on the key principle: The highest level of assurance comes from evidence that is obtained directly by the auditor, as it is independent and verifiable.

Conclude the reasoning: Based on the hierarchy of evidence reliability, the correct answer is 'Evidence obtained directly by the auditor, such as physical inspection,' as it provides the highest level of assurance in an attestation engagement.