Tick mark the correct answer. Audit techniques are concerned with.
A
Examination of those evidences which have been traced by audit procedures
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B
Application of generally accepted accounting principles to particular phase of a financial statement
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C
Accuracy and validity of management authorisation to the account section employees
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D
Method of conducting a business affair and reporting in annual report
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Solution
The correct option is A Examination of those evidences which have been traced by audit procedures Option A is correct.
Evidences are very important for an Auditor to form an opinion regarding financial statements. If Auditor fails to collect proper evidence, it will reduce the reliability of audit report. The method of collecting evidence is called audit technique.