The auditor is using a scanned version of sales contract and decided to confirm the terms with the outside party. Explain why the auditor would seek information from the external source in this situation.

Question content area bottom

Part $1$

The auditor decided to confirm the details because of concerns with regards to the

$$

authenticity of the document.

classes of transactions and account balances that the contract pertains to$.$

level of detail that is provided.

period of time that the contract covers.

If the sales contract is

$$

immaterial and is not signed

immaterial and$/$or the terms are standard

material and$/$or the terms are unusual

not the original copy and the amount is immaterial

$($both of which indicate a higher chance of material$$ misstatement$),$ the auditor would want to

$$

accept the evidence provided.

give a modified opinion.

obtain more reliable evidence

step down from the audit engagement.