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Choose the most reliable source of evidence from the two options given in each of the following scenarios: i) A bank reconciliation prepared by the Senior Chief...

      

Choose the most reliable source of evidence from the two options given in each of the following
scenarios:
i) A bank reconciliation prepared by the Senior Chief Accountant of XYZ Ltd. or, A
bank confirmation received from a small branch of Zed Bank Ltd; bankers of XYZ
Ltd.
ii) Negative circularization received directly by the client from a major debtor of XYZ
Ltd. or; Positive circularization received directly by the auditor from a debtor with
respect to a debt that had earlier been written off.
iii) A logbook that shows vehicle registration number NEB 201 is registered under the
ownership of the CEO of XYZ Ltd. or; An oral representation by the CEO of XYZ
Ltd. assuring you that the car is owned by XYZ Ltd.
iv) An LPO drafted by the Storekeeper of XYZ Ltd who has been procuring goods for
XYZ Ltd. for the past ten years or;
A Goods Received Note generated by the storekeeper and signed by the supplier upon delivery
of goods.

  

Answers


Kavungya
i. A bank reconciliation prepared by the Senior Chief Accountant of XYZ Ltd.
ii. Positive circularization received directly by the auditor from a debtor with respect to a
debt that had earlier been written oil
iii. A logbook that shows vehicle registration number NEB 201 is registered under the
ownership of the CEO of XYZ Ltd.
iv. An LPO drafted by the Storekeeper of XYZ Ltd who has been procuring goods for
XYZ Ltd. for the past ten years
Kavungya answered the question on May 14, 2019 at 13:45


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