Other than objectivity of evidence, give and explain the other 5 factors that can affect the reliability of audit evidence. b) Chu has identified the following audit evidence: i) Bank statements which showed the bank balances of the client at year end. ii) Inventory count sheets showing the amount of inventory counted by the client warehouse staff at year end. iii) Bank reconciliation prepared by the accounts clerk without any review. Demonstrate the reliability concept to Chu by suggesting a more reliable evidence for each of the evidence Chu identified. Explain clearly why each of your suggested evidence more reliable by referring to one factor in (a).(Each factor in (a) can only be used ONCE.)
Chu newly joins Simon & Co, CPA as an audit junior and his senior told him that the obtaining of audit evidence is a very important part of the audit and therefore the evidence obtained must be reliable.
a) Other than objectivity of evidence, give and explain the other 5 factors that can affect the reliability of audit evidence.
b) Chu has identified the following audit evidence:
i) Bank statements which showed the bank balances of the client at year end.
ii) Inventory count sheets showing the amount of inventory counted by the client warehouse staff at year end.
iii) Bank reconciliation prepared by the accounts clerk without any review.
Demonstrate the reliability concept to Chu by suggesting a more reliable evidence for each of the evidence Chu identified. Explain clearly why each of your suggested evidence more reliable by referring to one factor in (a).(Each factor in (a) can only be used ONCE.)
Step by step
Solved in 2 steps
