Auditors gather a number of different types of evidence in the course of an audit, including physical evidence, third-party representations, documentary evidence, computations, data interrelationships, client representations, and accounting records. Listed below are 10 audit procedures that are typically performed in an audit:

1. Observe the client's inventory taking procedures.

2. Obtain a report on the valuation of inventory by a specialist.

3. Examine an invoice in support of a sales transaction.

4. Examine an invoice in support of a purchase transaction.

5. Test the extensions on an inventory schedule.

6. Inspect the client's bank statement.

7. Examine equipment in the client's plant.

8. Obtain a confirmation of an account payable directly from the vendor.

9. Review the client's general ledger.

10. Perform analytical procedures to test the completeness of sales transactions.

Required:

a. For each audit procedure identify the type of evidence that the procedure gathers. If the procedure gathers documentary evidence, state whether the evidence is received directly by the auditors, created externally and held by the client, or created internally by the client.

b. Comment on the relative reliability of the three forms of documentary evidence.