Case 2. The two statements below are the result of an audit of an organization's cash controls. Specifically, the statements were part of the evidence gathered to satisfy the audit objective of "determining whether all cash receipts are deposited intact daily."

Statement I. During an interview, the controller assured an internal auditor that all cash receipts are deposited as soon as is reasonably possible.

Statement II. A comparison of a sample of cash receipts lists with the total of daily cash receipts journal entries and daily bank deposit slip amounts revealed that (1). Each cash receipts list equaled cash journal entry amounts but not daily bank deposit amounts and (2) each cash receipts list totals equaled bank deposit totals in the long run.

1. Which of the evidence is irrelevant?

a. Statement

b. Statement II

c. Both Statements I & II

d. None of the statements is irrelevant (i.e., both are relevant)

2. Which evidence(s), if any, is(are) sufficient, relevant, and reliable to satisfy the audit objective? (Note, this question asks which evidence, if any, alone, or both together, is sufficient, relevant, and reliable enough to support auditor's finding, or opinion, regarding the audit objective. An example of finding can be "the cash receipts are deposited intact daily", or, "the cash receipts are not deposited intact daily".)

3. The evidence may support what audit finding? (See the note above)