Which of the Following Types of Documentary Evidence Should the Auditor

question 3

Multiple Choice

Which of the following types of documentary evidence should the auditor consider to be the most reliable?

• A)A sales invoice issued by the entity and supported by a delivery receipt from an outside trucker.
• B)Confirmation of an account payable balance mailed by and returned directly to the auditor.
• C)A check issued by the company and bearing the payee's endorsement that is included with the bank statement mailed directly to the auditor.
• D)A working paper prepared by the entity's controller and reviewed by the entity's treasurer.

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Definitions:

Attorney General

The principal legal officer of a state or a country, responsible for representing the government in legal matters.

Picketing

The placement of persons for observation, patrol, and demonstration at the site of employment as part of employee pressure on an employer to meet a demand.

Boycotting

The act of refusing to buy, use, or participate as a means of protest or coercion.

Norris-LaGuardia Act

The Norris-LaGuardia Act of 1932 is a U.S. federal law that protects the right of workers to organize and engage in labor activities without employer interference.