6-22 Audit Evidence

6-22 Audit Evidence - b. Comment on the reliability of the...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
6-22 (Audit evidence) During the course of an audit, the auditor examines a wide variety of documentation. Listed below are some forms of documentary evidence and the sources from which they are obtained. 1. Bank statement sent directly to the auditor by the bank. 2. Creditor monthly statement obtained from client’s files. 3. Vouchers in client’s unpaid voucher file. 4. Duplicate sales invoices in filled order file. 5. Time tickets filed in payroll department. 6. Credit memo in customer’s file. 7. Material requisitions filed in storeroom. 8. Bank statement in client’s files. 9. Management working papers in making accounting estimates. 10. Paid checks returned with bank statement in (1) above. 11. Letter in customer file from collection agency on collectability of balance. 12. Memo in customer file from treasurer authorizing the write-off of the account. Required a. Classify the evidence by source into one of four categories: (1) directly from outsiders, (2)indirectly from outsiders, (3) internal but validated externally, and (4) entirely internal.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: b. Comment on the reliability of the four sources of documentary evidence. Answer A - 1. Directly from Outsiders 2. Indirectly from Outsiders 3. Entirely Internal 4. Entirely Internal 5. Entirely Internal 6. Entirely Internal 7. Entirely Internal 8. Indirectly from outsiders 9. Entirely Internal 10. Internally but validated externally 11. Indirectly from outsiders 12. Entirely internal B-AU326.19 states the following general presumption among others about the reliability of various types of evidence: "When evidential matter can be obtained from independent sources outside an enterprise, it provides greater assurance of reliability for the purposes of an independent audit than that secured solely within the enterprise." Using the AU326.19 presumption as reference, the four sources of evidence listed can be classified from most reliable to least reliable as follows: 1. directly from outsiders, 2. indirectly from outsiders, 3. internal but validated externally, 4. entirely internal....
View Full Document

This note was uploaded on 02/22/2011 for the course ACCT 491 taught by Professor Andrews during the Spring '11 term at University of Phoenix.

Page1 / 2

6-22 Audit Evidence - b. Comment on the reliability of the...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online