Question

The following five situations each contain two means of accumulating evidence. For each of the situations state

whether the first or the second type of evidence is more reliable and provide reasons for your choice.

a. Confirmation of receivables with consumers versus confirmation of accounts receivables with business organizations

b. Physically examine inventory of parts for the number of units on hand versus examining them for the likelihood of inventory being obsolete

c. Confirm the oil and gas reserves with the geologists specializing in oil and gas versus confirming a bank balanced

. Physically count the clients' inventory held by an independent party versus confirming the account with an independent party

e. Discuss with the audit client the procedures client for performing a stock take versus attend the stocktake and observe the procedures.