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c. For each of the following, determine the hierarchy of the source of evidence from most reliable to least reliable. a. Evidence obtained from internal
c. For each of the following, determine the hierarchy of the source of evidence from most reliable to least reliable. a. Evidence obtained from internal sources. b. Evidence obtained by the auditor. c. Evidence obtained from external sources. NEW 1 d. For each of the following, determine how the effectiveness of the entity's internal control affect the sufficiency and appropriateness of evidence gathered by auditors. a. As the entity's internal control is more effective, auditors would assess levels of material misstatement. This would allow them to permit a level of detection risk, which means that they could gather sufficient and appropriate evidence. b. As the entity's internal control is less effective, auditors would assess levels of material misstatement. This would require auditors to control detection risk to levels, which means that they would be required to gather sufficient and appropriate evidence. less more
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