Problem
Basque Inc operates a number of hotels providing accommodation, leisure facilities and restaurants. You are an audit senior of Mario Super LLP and you are currently conducting the audit of Basque Inc for the year ended December 31, 2016. During the course of the audit, you discovered that Basque's legal counsel received correspondence in November 2016 from a group of customers who attended a wedding at one of the company's hotels. They have alleged that they suffered severe food poisoning from food eaten at the hotel and are claiming substantial damages. Management has stated that based on discussions with their lawyers the claim is unlikely to be successful.
For each procedure, explain the audit evidence being used and provide an assessment of the reliability each procedure (relate it to assertions and your assessment of reliability).