During fieldwork, auditors design and perform audit procedures to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions that form the basis of the opinion (AICPA 2015a). Similarly, Kabbage gathers evidence to assess the financial position and creditworthiness of its applicants. Please respond to the following:

a. Create a list of the possible data sources that Kabbage could use in its credit analysis and then assess the reliability of each source using the criteria established by AU-C 500 Audit Evidence (AICPA 2015a).

b. Identify and explain which financial statement accounts and related financial statement assertions as identified by AU-C 315, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement (AICPA 2015d) would be most applicable to Kabbages lending decisions.

c. Please specifically describe how Kabbage might evaluate the existence and completeness of an applicants revenue transactions.

d. Explain which financial statement accounts and related assertions would be most difficult for Kabbage to evaluate since it only assesses transactional data.