According to an article in the CPA Journal, the auditorconsiders reliability of audit evidence…

According to an article in the CPA Journal, the auditorconsiders reliability of audit evidence collected and thereliability of that evidence to reduce the risk of financialstatements containing undetected material errors. Compare andcontrast at least two (2) types of evidence, and make arecommendation as to which you believe is the most reliable inreducing risk. Support your position. From the e-Activity, analyzethe primary ways in which auditors would use the information fromdowngrades to assess business risk or evaluate the likelihood thatthe downgrades would impact the auditor’s assessment of theclient’s business environment. Ascertain the major ways in whichthis information would impact the audit risk model equation.Support your position.

 

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