According to an article in the CPA Journal, the auditor considers reliability of audit evidence collected and the reliability of the evidence to reduce the risk of financial statements containing undetected material errors. Compare and contrast at least (2) types of evidence, and make a recommendation as to which you believe is the most reliable in reducing risk.

Week 4 eactivity Use the internet to research at least two (2) companies have experienced downgrades related to stock performance or bond ratings within the last five (5) years.

From the e-Activity, analyze the primary ways in which auditors would use the information from downgrades to assess business risk or evaluate the likelihood that the downgrades would impact the auditor's assessment of the client's business environment. Ascertain the major ways in which this information would impact the audit risk model equation. Support your position