Evidence comes in various types and has different degrees of reliability. Following are some statements that compare various types of evidence.

a. A bank confirmation versus observation of the segregation of duties be- tween cash receipts and recording payment in the accounts receivable subsidiary ledger.

b. An auditor's recalculation of depreciation versus examination of raw material requisitions.

c. A bank statement included in the client's records versus shipping documents.

d. Physical examination of common stock certificates versus physical examination of inventory components for a personal computer. Required: For each situation, indicate whether the first or second type of evidence is more reliable. Provide a rationale for your choice.. p-968