Question
Assume that you are a newly appointed junior auditor in KPMG, an auditing firm. After a 3-month rigorous training on the job, you have been
Assume that you are a newly appointed junior auditor in KPMG, an auditing firm. After a 3-month rigorous training on the job, you have been awarded the certificate of completion and is now ready to embark on your very first assignment. Today, your first job was to evaluate the audit evidence gathered by your team fromMuscat Trading and see if they are reliable or not based on ISA 500. The following are the evidences gathered in various forms: a) You were asked by your senior auditor to get direct confirmation from an independent lawyer on the certainty level of winning the legal case of Muscat Trading against a customer. The lawyer gave you his verbal confirmation that based on the legal evidences presented, Muscat Trading is sure to win the case. b) Muscat Trading is well-run by the management and has an effective internal audit team. When you asked for sales invoice, they gave you the duplicate (second copy) of sales invoice. c) Your colleague, the auditor in-charge of cash count gave you her report as part of audit evidence. d) One of the files in the audit evidences was a photocopy of company directors minutes of meetings signed by the company secretary. e) You have interviewed several key officials of the company about some material transactions related to purchases. Their verbal reply was all recorded on camera and was included as audit evidence. Required: I want to get the order of which one is most reliable to the least reliable.with reasons
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started