Solved

For Each of the Following Combinations of Audit Evidence, Rank

Question 33

Essay

For each of the following combinations of audit evidence, rank the items in terms of their reliability:
1.
A. Bank statement from the entity's records
B. Bank statement sent directly to the auditor
C. Cash at bank ledger
2.
D. Audit firm conducts the physical count of inventory
E. Internal audit reports on the physical count of inventory
F. Auditor supervises internal audit conducting the physical count of inventory
3.
G .Management provides a representation letter on the accuracy of valuations
H. The auditor receives a letter from the agent who conducted the valuation confirming its accuracy
I. The auditor hires an independent agent to confirm the valuation
4.
J. The auditor conducted an inventory count two months before reporting date
K. Internal audit conducted an inventory count 3.days before reporting date
L .Internal audit conducted a supervised inventory count on reporting date
5.
M. Management assured the auditor of the probable outcome of a pending court case
N .The entity's lawyers assured the auditor of the probable outcome of a pending court case
O. The auditor received a representation from the entity's lawyers regarding the probable outcome of a pending court case

Correct Answer:

verifed

Verified

From least reliable to most reliable:
\...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents