Which of the following types of documentary evidence should the auditor consider to be the most reliable?
A) A sales invoice issued by the client and supported by a delivery receipt from an outside trucker.
B) Confirmation of an account payable balance mailed by and returned directly to the auditor.
C) A check issued by the company and bearing the payee's endorsement that is included with the bank statement mailed directly to the auditor.
D) A working paper prepared by the client's controller and reviewed by the client's treasurer.

Question

Quizplus · Accepted Answer

Confirmation of an account payable balance mailed by and returned directly to the auditor is the most reliable type of documentary evidence because it provides direct communication from a third party to the auditor. The other options involve documents that could potentially be falsified or altered by the client.

Which of the Following Types of Documentary Evidence Should the Auditor