7-35 The following are nine situations, each containing two means of accumulating evidence.
1.Confirm receivables with consumers versus confirming accounts receivable with business organizations.
2.Physically examine 3-inch steel plates versus examining eletronic parts.
3.Examine duplicate sales invoices when several competent people are checking each other's work versus examining documents prepare by a competent person on a one-person staff.
4.Physically examine inventory of parts for the number number of units on hand versus examining them for the likelihood of inventory being obsolete.
5. Discuss the likelihood an amount of loss in lawsuit against the client with client's in-house legal counsel versus discussion with the CPA firm's own legal counsel.
6. Confirm the oil and gas reserves with a geologist specializing in oil and gas versus confirming a bank balance.
7.confirm a bank balance versus examining the client's bank statement.
8.Physically count the client's inventory held by an independent party versus confirming the count with an independent party.
9.Obtain a physical inventory held by an independent party versus physically counting the client's inventory.
a.Identify the six factors that determine the reliability of evidence.
b.For each of the nine situations, state whether the first or second type of evidence is mor reliable
c.For each situations, state which which of the six factors affected the reliability of the evidence.