Following Are Examples of Evidence That Could Be Collected During

question 78

Essay

Following are examples of evidence that could be collected during an audit of financial statements.
1.Duplicate copies of sales invoices
2.Inspection of new $100 000 cutting machine
3.Bank confirmation
4.Remittance advices
5.Vendors' invoices
6.Standard letter from lawyer to auditor
7.Auditor inventory count sheets
8.Shipping documents
9.Payroll cheques
10.Long-term debt agreements review notes
11.Auditor interest expense calculation worksheet
12.Observation by auditor of computer error message (invalid supplier number)
13.Gross margin calculation
14.Interview notes from interview with credit manager
Required:
Classify each type of evidence as to its reliability (1 - high,2 - moderate,3 - low).Justify your classification.

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Definitions:

Scar Tissue

Fibrous tissue that forms over a wound as it heals, which can sometimes cause functional problems and differ in appearance from the surrounding tissue.

Redness

A condition of the skin or other tissues characterized by being redder than usual, often as a sign of inflammation or infection.

Swelling

An abnormal enlargement of a body part or area, typically as a result of an accumulation of fluid or inflammation.

Localized Warmth

A specific area of the body experiencing an increase in temperature, often indicating an underlying condition or reaction.