Jenna is working on the audit of a client's accounts receivable. During the risk assessment stage, she has conducted an audit data analytic using data provided directly by the client, by grouping Accounts Receivable by days overdue to assess the risk of the accuracy, valuation, and allocation assertion and an overstatement of accounts receivable. During the past few weeks, she has conducted interviews with the accounts receivable manager, the CFO, and staff working in the accounts receivable department. She has also overseen the external confirmations of accounts receivable, 30 percent of which required the recipient to respond as to whether or not the amount stated was correct. Jenna also conducted a review of subsequent cash receipts from the client's customers. She vouched a sample of accounts receivable balances back to the underlying invoices, cash receipts, and sales returns, and traced a sample of these documents to the accounts receivable ledger.
Which of the following statements accurately describe the evidence collected and its persuasiveness?
External confirmations provide evidence regarding existence.
External confirmations provide the most persuasive type of evidence.
Documentary evidence provides more persuasive evidence than external confirmation.
Documentary evidence provides evidence regarding existence when vouching the sample of accounts receivable balances back to the supporting documentation.
Documentary evidence provides evidence regarding completeness when vouching the sample of accounts receivable balances back to the supporting documentation.
Verbal evidence provides less persuasive evidence than documentary evidence.
Verbal evidence gathered when the auditor asks about how bad debts are identified provides evidence regarding accuracy, valuation, and allocation.
