A) Distinguish Between Internal Documentation and External Documentation as Types

question 44

Essay

A) Distinguish between internal documentation and external documentation as types of audit evidence. Give two examples of each. Which type is considered more reliable?
B) Below are 10 documents typically examined by auditors. Classify each document as either internal or external.
$$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Type of } \\\text { Document }\end{array} & \text { Documents } \\\hline & \text { 1. Cancelled cheques for payments of accounts payable } \\\hline & \text { 2. Payroll time cards } \\\hline & \text { 3. Duplicate sales invoices } \\\hline & \text { 4. Vendor's invoices } \\\hline & \text { 5. Bank statements } \\\hline & \text { 6. Minutes of the board of directors' meetings } \\\hline & \text { 7. Signed lease agreements } \\\hline & \text { 8. Notes receivable } \\\hline & \text { 9. Subsidiary accounts receivable records } \\\hline & \text { 10. Customer payment remittance advices } \\\hline\end{array}$$

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Definitions:

Team Selling

A sales approach where a group of individuals with different expertise work together to sell a product or service to a customer.

Conference Selling

A sales strategy that involves selling products or services to potential clients during conferences or similar events, often utilizing booths or presentations.

Educational Programs

Structured sets of learning experiences or activities designed to educate individuals or groups, often aimed at gaining specific knowledge or skills.

Buyers

Individuals or organizations that purchase goods or services for personal or professional use.