Internal auditors gather a number of different types of evidence in the course of an audit with varying degrees of competence and reliability. Listed below are five audit procedures that are typically performed in an audit. For each procedure, state

(1) what type of evidence is being examined, and

(2) the relative reliability of that evidence to the auditor.

a. Examine an invoice in support of a purchase transaction.

b. Examine a cut-off bank statement received directly from the bank.

c. Examine office equipment and store displays in the auditee's work areas.

d. Discuss inventory taking procedures with the auditee's staff.

e. Test extensions and footings on an inventory schedule