The following are examples of documentation typically obtained by auditors:

Duplicate sales invoices

Subsidiary accounts receivable records

Vendors' invoices

General ledgers

Title insurance policies for real estate

Notes receivable

Bank statements

Cancelled payroll checks

Cancelled notes payable

Payroll time cards

Purchase requisitions

Articles of incorporation

Receiving reports (documents prepared when merchandise is received)

Minutes of the board of directors

Signed W-4s (Employee's Withholding Exemption Certificates)

Remittance advices

Signed lease agreements

Duplicate copies of bills of lading

Required

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

Explain why external evidence is more reliable than internal evidence.