The following situations present the auditor with alternative sources of evidence regarding a particular assertion. For each situation numbered 1-3, (1) identify the assertion the auditor is most likely testing with both procedures and (2) indicate which of the two sources presents the most persuasive evidence and why.

1. a. Request vendor statements at year-end for all significant vendors from which the client made purchases during the year.

b. Review all payments made to vendors and suppliers after year-end to determine if they were properly recorded as accounts payable.

Management assertion:

Most Persuasive and why:

2. a. confirm a year-end bank balance with the client's banking institution.

b. review the client's year-end bank statement.

Management assertion:

Most persuasive and why:

3. a. Confirm with outside warehouse the inventory that is being held there.

b. Physically observe the client's count of existing inventory.

Management assertion:

Most persuasive and why: