Problem

(Objective 7-4) The following are examples of documentation typically obtained by auditors...

(Objective 7-4) The following are examples of documentation typically obtained by auditors:

1. Duplicate sales invoices


2. Subsidiary accounts receivable records


3. Vendors’ invoices


4. General ledgers


5. Title insurance policies for real estate


6. Notes receivable


7. Bank statements


8. Cancelled payroll checks


9. Cancelled notes payable


10. Payroll time cards


11. Purchase requisitions


12. Articles of incorporation


13. Receiving reports (documents prepared when merchandise is received)


14. Minutes of the board of directors


15. Signed W-4s (Employee’s Withholding Exemption Certificates)


16. Remittance advices


17. Signed lease agreements


18. Duplicate copies of bills of lading

a. Classify each of the preceding items according to type of documentation: (1) internal or (2) external.

b. Explain why external evidence is more reliable than internal evidence.

Objective 7-4

Identify and apply the eight types of evidence used in auditing.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search