The following situations present the auditor with alternative sources of evidence regarding a particular assertion.

Sources of audit evidence:

1. verify accounts receivable by comparison with prior year balances and sales figures versus confirming receivables with consumers.

2. visually inspecting an inventory of electronics components versus performing an inventory turnover and sales analysis by products and product lines.

3. observing the counting of a clients year-end physical inventory versus confirming the inventory held at an independent warehouse by requesting a confirmation from the owner of the warehouse where the inventory is held.

4. confirming a year-end bank balance with the clients banking institution versus having a cut-off bank statement as of 20 January for all activity from 31 December to 20 January sent to the auditor assuming a 31 December balance date.

Required:

For each of the above situations,

(a) identify the assertion the auditor is most likely testing with the procedure

(b) identify which of the two sources presents the most persuasive evidence, and briefly indicate the rationale for your answer.