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Which of the following procedures would provide most reliable evidence in relation to new business won post year end
a)Review of post year end sales orders from new customer
b)inspect email correspondence between sales director of Oak Co and the new customer
c)obtain written representation confirming level of business agreed with new customer
d)Review of board minutes discussing contract with new customerSir correct ans is a) but can you please explain me
(a) Is third party written evidence of sales being made
(b) Is at least written, but might not show that there is a new customer.
(c) Management representation are very weak evidence
(d) InternalSir in Bpp text book , there are three types of evidences mentioned. The quality of evidence in descending order is as follows:
1)Evidence originated by the auditors— most reliable
2)Evidence created by third parties
3)Evidence created by managementSir I want to ask 1 thing that board minutes comes under which category? will it come in num 3 category (i,e management)?
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