Alvin is auditing Demure Fashions Inc., a chain of women’s clothing stores. Demure operates six stores in shopping malls across the Toronto area and has been an audit client of Alvin’s firm for several years. Alvin has been assigned the audit of Demure’s store fixtures account. This year the audit partner has instructed Alvin that detection risk for the store fixtures account must reduced to a very low level, this is because Demure is negotiating new financing that will use the store fixtures as collateral.
Demure’s chief accountant has given Alvin a detailed list of all the store fixtures (shelving, clothing display racks, and sales counters) included in Demure’s general ledger account. The accounting policy is to record store fixtures at cost, with depreciation recognized using the straight-line method.
On the company’s year-end date, January 2, 20X1, Alvin visited all six of the stores, looked at the fixtures in place, and compared them to the descriptions on the list. In eight cases he could not locate the listed fixture and asked the store manager where it was. In every case, the manager said the fixture unit had been placed in storage because it was broken and in need of repair. In one new store, Alvin found nine new clothing racks that were not included on the list. The store manager told him these racks had been purchased a few days before year-end.

Required:
a. Identify three types of audit evidence Alvin has obtained and explain which assertion(s) this evidence is relevant to.
b. Of the evidence Alvin obtained, which do you think is the most reliable? Why?
c. Describe one additional procedure Alvin should perform to get evidence regarding another assertion, and explain what assertion that evidence would be relevant to.