Requir For eac able. P 5-35 Inspec аccoun docume are exa 1. Dup 2. Purc 3. Ban 4. Rem 5. Vene 6. Mate
Requir For eac able. P 5-35 Inspec аccoun docume are exa 1. Dup 2. Purc 3. Ban 4. Rem 5. Vene 6. Mate
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ical examination of inventory components for a personal compuier.
For each situation, indicate whether the first or second type of evidence is more reli.
ent versus phys
d. Physical inspection of common stock
ical examination of inventory components for a personal comp
accounting records and other information. One issue that affects the reliability of
documentary evidence is whether the documents are internal or external. Following
estment versus phys.
5-35 Inspection of records and documents relates to the auditor's examination of entity
С. А
Required:
For each situation, indicate whether the first or second type of evidence:
able. Provide a rationale for your choice.
, 5-5
are examples of documentary evidence:
1. Duplicate copies of sales invoices.
2. Purchase orders.
3. Bank statements.
4. Remittance advices.
5. Vendors' invoices.
6. Materials requisition forms.
7. Overhead cost allocation sheets.
8. Shipping documents.
9. Payroll checks.
10. Long-term debt agreements.
Required:
a. Classify each document as internal or external evidence.
b. Classify each document as to its reliability (high, moderate, or 1ow).
ond evaluating
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