For each of the following combinations of audit evidence, rank the items in terms of their reliability:
1
A Bank statement from the entity's records
B Bank statement sent directly to the auditor
C Cash at bank ledger
2
D Audit firm conducts the physical count of inventory
E Internal audit reports on the physical count of inventory
F Auditor supervises internal audit conducting the physical count of inventory
3
G Management provides a representation letter on the accuracy of valuations
H The auditor receives a letter from the agent who conducted the valuation confirming its accuracy
I The auditor hires an independent agent to confirm the valuation
4
J The auditor conducted an inventory count two months before reporting date
K Internal audit conducted an inventory count 3 days before reporting date
L Internal audit conducted a supervised inventory count on reporting date
5
M Management assured the auditor of the probable outcome of a pending court case
N The entity's lawyers assured the auditor of the probable outcome of a pending court case
O The auditor received a representation from the entity's lawyers regarding the probable outcome of a pending court case