Question

What is the best evidence to audit the following?

1- Inventory

2- Accounts Receivable

3- Depreciation expense

4- Contingent liabilities

5- Collectibles

Answer 1

Best evidences to audit the following;

1. Inventory - physical verification is the best evidence since it confirm the Existance of the inventory and condition of the inventory.

2. Accounts receivables - obtaining direct balance confirmations from the customers

3. Depreciation expenses - Re calculation of depreciation based on the fixed asset register

4. Contingent liability - obtaining third party expert opinion on the possibility of the amount.

5. Collectibles - physical verification of items