Evidence comes in various types and has different degrees of reliability. Following are some statements that compare various types of evidence.
| a. |
A bank confirmation versus observation of the segregation of duties between cash receipts and recording payment in the accounts receivable subsidiary ledger.
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| b. |
An auditor%u2019s recalculation of depreciation versus examination of raw material requisitions. |
| c. |
A bank statement included in the client%u2019s records versus shipping documents.
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| d. |
Physical inspection of common stock certificates held for investment versus physical examination of inventory components for a personal computer.
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| Required: |
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For each situation, indicate whether the first or second type of evidence is more reliable. Provide a rationale for your choice.
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