This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: indicate which of the two alternatives is likely to be best. A. Inspecting inventory items versus calculating inventory turnover Physical Examination/ARP Inspecting inventory items is the more persuasive evidence because it is obtained directly by the auditor, is objective, and is relevant to the auditor’s objective (existence and valuation). B. Reviewing the client’s payments to suppliers after year end to check accounts payable versus obtaining supplier statements as of year end Both types of evidence are examination of documents and records The vendor’s statements received directly from the vendor would provide strong evidence of the amount owed. Examining client’s payment around period end would be useful if the objective was to establish that a clean cutoff took place....
View Full Document
- Fall '08
- Financial audit, Best Audit Procedures