Following are examples of evidence that could be collected during an audit of financial statements.
1.Duplicate copies of sales invoices
2.Inspection of new $100 000 cutting machine
3.Bank confirmation
4.Remittance advices
5.Vendors' invoices
6.Standard letter from lawyer to auditor
7.Auditor inventory count sheets
8.Shipping documents
9.Payroll cheques
10.Long-term debt agreements review notes
11.Auditor interest expense calculation worksheet
12.Observation by auditor of computer error message (invalid supplier number)
13.Gross margin calculation
14.Interview notes from interview with credit manager
Required:
Classify each type of evidence as to its reliability (1 - high,2 - moderate,3 - low).Justify your classification.

Question

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The Answer of Following are examples of evidence that could be collected during an audit of financial statements.
1.Duplicate copies of sales invoices
2.Inspection of new $100 000 cutting machine
3.Bank confirmation
4.Remittance advices
5.Vendors' invoices
6.Standard letter from lawyer to auditor
7.Auditor inventory count sheets
8.Shipping documents
9.Payroll cheques
10.Long-term debt agreements review notes
11.Auditor interest expense calculation worksheet
12.Observation by auditor of computer error message (invalid supplier number)
13.Gross margin calculation
14.Interview notes from interview with credit manager
Required:
Classify each type of evidence as to its reliability (1 - high,2 - moderate,3 - low).Justify your classification.

Following Are Examples of Evidence That Could Be Collected During