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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. |
| 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. |
| d. |
Physical inspection of common stock certificates held for investment versus physical examination of inventory components for a personal computer. |
| 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. |