The following are nine situations, each containing two meansof accumulating evidence:1. Confirm receivables with consumers versus confirming accounts receivable withbusiness organizations.2. Physically examine 3-inch steel plates versus examining electronic parts.3. Examine duplicate sales invoices when several competent people are checking eachother’s work versus examining documents prepared by a competent person on aone-person staff.4. Physically examine inventory of parts for the number of units on hand versusexamining them for the likelihood of inventory being obsolete.5. Discuss the likelihood and amount of loss in a lawsuit against the client with client’sin-house legal counsel versus discussion with the CPA firm’s own legal counsel.6. Confirm the oil and gas reserves with a geologist specializing in oil and gas versusconfirming a bank balance.7. Confirm a bank balance versus examining the client’s bank statements.8. Physically count the client’s inventory held by an independent party versus confirming the count with an independent party.9. Obtain a physical inventory count from the company president versus physicallycounting the client’s inventory.a. Identify the six factors that determine the reliability of evidence.b. For each of the nine situations, state whether the first or second type of evidence ismore reliable.c. For each situation, state which of the six factors affected the reliability of theevidence.
The following are nine situations, each containing two meansof accumulating evidence:1. Confirm receivables with consumers versus confirming accounts receivable withbusiness organizations.2. Physically examine 3-inch steel plates versus examining electronic parts.3. Examine duplicate sales invoices when several competent people are checking eachother’s work versus examining documents prepared by a competent person on aone-person staff.4. Physically examine inventory of parts for the number of units on hand versusexamining them for the likelihood of inventory being obsolete.5. Discuss the likelihood and amount of loss in a lawsuit against the client with client’sin-house legal counsel versus discussion with the CPA firm’s own legal counsel.6. Confirm the oil and gas reserves with a geologist specializing in oil and gas versusconfirming a bank balance.7. Confirm a bank balance versus examining the client’s bank statements.8. Physically count the client’s inventory held by an independent party versus confirming the count with an independent party.9. Obtain a physical inventory count from the company president versus physicallycounting the client’s inventory.a. Identify the six factors that determine the reliability of evidence.b. For each of the nine situations, state whether the first or second type of evidence ismore reliable.c. For each situation, state which of the six factors affected the reliability of theevidence.
The following are nine situations, each containing two meansof accumulating evidence:1. Confirm receivables with consumers versus confirming accounts receivable withbusiness organizations.2. Physically examine 3-inch steel plates versus examining electronic parts.3. Examine duplicate sales invoices when several competent people are checking eachother’s work versus examining documents prepared by a competent person on aone-person staff.4. Physically examine inventory of parts for the number of units on hand versusexamining them for the likelihood of inventory being obsolete.5. Discuss the likelihood and amount of loss in a lawsuit against the client with client’sin-house legal counsel versus discussion with the CPA firm’s own legal counsel.6. Confirm the oil and gas reserves with a geologist specializing in oil and gas versusconfirming a bank balance.7. Confirm a bank balance versus examining the client’s bank statements.8. Physically count the client’s inventory held by an independent party versus confirming the count with an independent party.9. Obtain a physical inventory count from the company president versus physicallycounting the client’s inventory.a. Identify the six factors that determine the reliability of evidence.b. For each of the nine situations, state whether the first or second type of evidence ismore reliable.c. For each situation, state which of the six factors affected the reliability of theevidence.
The following are nine situations, each containing two means of accumulating evidence: 1. Confirm receivables with consumers versus confirming accounts receivable with business organizations. 2. Physically examine 3-inch steel plates versus examining electronic parts. 3. Examine duplicate sales invoices when several competent people are checking each other’s work versus examining documents prepared by a competent person on a one-person staff. 4. Physically examine inventory of parts for the number of units on hand versus examining them for the likelihood of inventory being obsolete. 5. Discuss the likelihood and amount of loss in a lawsuit against the client with client’s in-house legal counsel versus discussion with the CPA firm’s own legal counsel. 6. Confirm the oil and gas reserves with a geologist specializing in oil and gas versus confirming a bank balance. 7. Confirm a bank balance versus examining the client’s bank statements. 8. Physically count the client’s inventory held by an independent party versus confirming the count with an independent party. 9. Obtain a physical inventory count from the company president versus physically counting the client’s inventory. a. Identify the six factors that determine the reliability of evidence. b. For each of the nine situations, state whether the first or second type of evidence is more reliable. c. For each situation, state which of the six factors affected the reliability of the evidence.
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
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