Part 4 Appropriateness of Audit Evidence (20 points) 1. Define\Discuss what is meant by RELEVANCE gathering evidence would be considered more reliable AND indicate a reason from the following list: A. Independent source of the information (Independence of 1 B. Auditor' s direct knowledge; C. Knowledgeable source (qualifications of individuals providing the information) D. Degree of objectivity versus subjectivity and E. Functioning system of internal controls. DO NOT DISCUSS your answer READ CAREFULLY. Item Number more reliable additions to the "land" account, or (2) the auditor considers the adequacy of the "allowance for doubtful accounts" b. 1. The auditor relies on an analysis prepared by the controller of gross margin to sales for the current and prior periods; or (2) The auditor calculates gross margin to sales and compares to similar data for prior periods. confirmation received directly from the customer of the company being audited, or 2. The auditor compares customer balances for the year under audit to respective customer balances for 1 d. Auditor tests two segments of the company 1. In the first segment, Control Risk is assessed at 80 or 2. In the second segment, Control Risk is assessed at .2 1