The following are examples of documentation typically obtained by auditors:

1. Vendors invoices

2. General ledger files

3. Bank statements

4. Cancelled payroll checks

5. Payroll time records

6. Purchase requisitions

7. Receiving reports (documents prepared when merchandise is received)

8. Minutes of the board of directors

9. Remittance advices

10. Signed W-4s (Employees Withholding Exemption Certificates)

11. Signed lease agreements

12. Duplicate copies of bills of lading

13. Subsidiary accounts receivable records

14. Cancelled notes payable

15. Duplicate sales invoices

16. Articles of incorporation

17. Title insurance policies for real estate

18. Notes receivable

Required

a. Classify each of the preceding items according to type of documentation: (1) internal or (2) external.

b. Explain why external evidence is more reliable than internal evidence.