Vendors' statements and vendors' invoices are both relatively reliable evidence because they
A) come directly to the auditor without being in client's possession.
B) originate from a third party.
C) validate the effectiveness of the control system.
D) are compared to and reconciled with sales invoices.

Question

Quizplus · Accepted Answer

Vendors' statements and vendors' invoices both originate from a third party, which provides greater reliability than evidence that is internally generated by the client. While they may not validate the effectiveness of the control system, they are still considered reliable evidence due to their external source. Sales invoices may not always be relevant or available to compare and reconcile with vendors' statements and invoices.

Vendors' Statements and Vendors' Invoices Are Both Relatively Reliable Evidence