Which of the following types of documentary evidence should the auditor consider to be the most reliable?
a. A sales invoice issued by the client and supported by a delivery receipt from an outside trucker
b. A check, issued by the company and bearing the payee’s endorsement, that is included with the bank statements mailed directly to the auditor
C. An audit schedule prepared by the client’s controller and reviewed by the client’s treasurer.
d. Confirmation of an account payable balance mailed by and returned directly to the auditor
2. Which of the following statements is not correct?
a. It is possible to vary the sample size from one unit to 100% of the items in the population
b. The sample size for any given procedure is likely to vary from audit to audit
C. Cost is an adequate justification for not gathering an adequate sample size
d. The the decision of how many items to test must be made by the auditor for each audit procedure.
