Auditors gather several different types of evidence during the audit including physical evidence; third party representation; documentary evidence; computations; and client representation. Listed below are FIVE (5) audit procedures that are typically performed in an audit: i. Observe the client's inventory taking procedures. ii. Computer printout from client's accounts receivable subsidiary ledger. iii. Obtain a report on the valuation of inventory by a specialist. iv. Examine an invoice in suppport of a sales transaction. v. Inspect the client's bank statements. Required: a) Verify whether each of the above (i) to (v) documentary evidence is used is received directly by auditors, created externally, and held by client, or created internally by client. b) Exhibit the difference between relative reliability of the above THREE (3) forms of documentary evidence
Auditors gather several different types of evidence during the audit including physical evidence; third party representation; documentary evidence; computations; and client representation. Listed below are FIVE (5)
i. Observe the client's inventory taking procedures.
ii. Computer printout from client's
iii. Obtain a report on the
iv. Examine an invoice in suppport of a sales transaction.
v. Inspect the client's bank statements.
Required:
a) Verify whether each of the above (i) to (v) documentary evidence is used is received directly by auditors, created externally, and held by client, or created internally by client.
b) Exhibit the difference between relative reliability of the above THREE (3) forms of documentary evidence.
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