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REQUIRED: FOR THE VALUATION ASSERTION, IDENTIFY THE RISKIER [THAT IS,LESS RELIABLE] PROCEDURE AND EXPLAIN WHY. Procedure A Procedure B Which [if either] is Riskier? 1.
| REQUIRED: FOR THE VALUATION ASSERTION, IDENTIFY THE RISKIER [THAT IS,LESS RELIABLE] PROCEDURE AND EXPLAIN WHY.
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| Procedure A | Procedure B | Which [if either] is Riskier? | |
| 1. Physically examine inventory of parts for the number of units on hand | versus | examine inventory for obsolescence. | |
| 2. Estimate a company's oil reserves with a geologist specializing in oil and gas | versus | Estimate the amount of oil stored in a tank farm | |
| 3 Confirm a bank balance with the bank | versus | examine the bank statements provided by the client. | |
| 4 Examine an original document | versus | Examine a copy of a document | |
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