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A statement of account from a supplier stating the amount owed by Moo Moo Co. B. Suggest an alternative evidence which can upgrade the evidence mentioned. A better evidence would be for auditor to obtain the statement directly from the supplier because auditor should have their own record of supplier.
A statement of account from a supplier stating the amount owed by Moo Moo Co. B. Suggest an alternative evidence which can upgrade the evidence mentioned. A better evidence would be for auditor to obtain the statement directly from the supplier because auditor should have their own record of supplier.
A statement of account from a supplier stating the amount owed by Moo Moo Co. B. Suggest an alternative evidence which can upgrade the evidence mentioned. A better evidence would be for auditor to obtain the statement directly from the supplier because auditor should have their own record of supplier.
A statement of account from a supplier stating the amount owed by
Moo Moo Co. a. Discuss on their reliability. The statement of account is from outsider that is from a supplier. Therefore, the statement of account from a supplier is an external source. The statement is obtained from the supplier, thus its an indirect knowledge or evidence. The statement is a written form, instead of oral form. The statement is an original document because the supplier needs the original document to record it in the accounting system. In all, the statement of account from a supplier is reliable enough. b. Suggest an alternative evidence which can upgrade the evidence mentioned. A better evidence would be for auditor to obtain the statement directly from the supplier because auditor should have their own record of supplier. 2. Inventory count sheets from Moo Moo Co showing the quantity counted. a. Discuss on their reliability. The inventory count sheet is from Moo Moo Co. Therefore, its an internal source. The inventory count sheet is obtained from Moo Moo Co, thus its a direct knowledge or evidence. The inventory count sheet is a written form, instead of oral form. The inventory count sheet is an original document because its showing the accurate quantity counted by Moo Moo Co. In all, the inventory count sheet from Moo Moo Co is reliable enough. b. Suggest an alternative evidence which can upgrade the evidence mentioned. A better evidence would be for auditor to personally go to the stored to observe the process when the quantity counted.
3. A trainee accountant, presently studying for the ACCA examinations, explaining the reason why electric charges is higher this year compared to last year. a. Discuss on their reliability. The trainee accountant is work in Moo Moo Co. Therefore, the source of electric charges is internal source. The source of electric charges is obtained from external company, thus its an indirectly knowledge or evidence. The source of electric charges is an oral form, instead of written form. The source of electric charges is an original document because the trainee accountant needs to use the accurate amount of electric charges to compare with last year. In all, its less reliable. b. Suggest an alternative evidence which can upgrade the evidence mentioned. A better evidence would be for auditor to obtain the evidence in the form of document in written form and write out a report about electric charges.
4. The finance director telling you that the useful life of a newly acquired motor vehicle is estimated to be 5 years. a. Discuss on their reliability. The finance director works in the Moo Moo Co. Therefore, the source is an internal source. The source is told by the finance director, thus its an indirect knowledge and evidence. The statement is an oral form, instead of written form. The source is an original document because finance director needs to use it to estimate useful life of motor vehicle and its obtained from Moo Moo Co. In all, the source is less reliable. b. Suggest an alternative evidence which can upgrade the evidence mentioned. A better evidence would be for auditor to obtain the useful life of motor vehicle by using the straight line method or reducing balance method.
5. A bank statement stating the balance in the bank account owned by Moo Moo Co. a. Discuss on their reliability. The bank statement is owned by Moo Moo Co. The statement is issued by bank. Therefore, the bank statement is an external source. The bank statement is obtained from bank, thus its an indirect knowledge or evidence. The bank statement is a written form, instead of oral form. The bank statement is an original document because it needs to state the actual amount balance in the bank account of Moo Moo Co. In all, the bank statement is reliable enough. b. Suggest an alternative evidence which can upgrade the evidence mentioned. A better evidence would be for auditor to check and compare the statement with bank account.