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Question No 2: (2x5=10 Marks) Assume that you are a newly appointed junior auditor in Delloite, an auditing firm. After a 3-month rigorous training on
Question No 2: (2x5=10 Marks) Assume that you are a newly appointed junior auditor in Delloite, an auditing firm. After a 3-month rigorous training on the job, you have been awarded the certificate of completion and is now ready to embark on your very first assignment. Today, your first job was to evaluate the audit evidence gathered by your team from Sohar Trading and see if they are reliable or not based on ISA 500. The following are the evidences gathered in various forms: a) One auditor from your team sent letters to customers to confirm their payment to Sohar Trading. Today, you received back the letter from the customers with their confirmation and signature. b) You are analyzing the cash balance and bank balance of the company. You have prepared bank reconciliation to see where the difference on cash balance is. After you finished analyzing, you include the bank reconciliation in your audit evidence file. c) One key official sent an email to the audit team as a reply to your inquiry about the companys building construction. d) The bookkeeper submitted to the audit team the original official receipt as support to the companys payment of the furniture purchased. e) The accountant gave verbal confirmation to your inquiry about the suppliers dealing with the company. Required: Evaluate the reliability of each of the documents above and identify the one that is considered the most reliable and least reliable. (2 marks each)
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