A contract dispute has arisen between an organization and a major supplier. To resolve the dispute, the most competent evidence is:
Answer(s): B
The best primary) evidence is the most persuasive evidence. Reliability and the best evidence rule are closely related. The best evidence rule is ordinarily applied only to documentary evidence, especially to proof of the content of a writing. If the original writing is available, the best evidence rule prohibits a parry from proving the content of a writing through oral testimony. Therefore, the original writing is the most competent evidence.
Which of the following statements describes an internal control questionnaire?
Answer(s): D
An internal control quest consists re consists of a series of questions about the controls designed to prevent or detect errors or irregularities lies. Answers to the questions help the internal auditor to identify specific internal control policies and procedures relevant to specific assertions and to design tests of controls to evaluate the effectiveness of their design and operation. The questionnaire provides a framework to assure that specific concerns are not overlooked. but it is not a sufficient means of understanding the entire system. Thus, the evidence obtained is indirect and requires corroboration by means of observation. interviews, flowcharting. examination of documents, etc.
During interviews with the inventory management personnel, an internal auditor learned that salespersons often order inventory for stock without receiving the approval of the vice president of sales. Also, detail testing showed that there are no written approvals on purchase orders for replacement parts. The detail testing is a good example of
Answer(s): C
Corroborative evidence is evidence from a different source that supplements and confirms other evidence. For example, oral testimony that a certain procedure was not performed may be corroborated by the absence of documentation.
Much of the internal auditor's work involves accumulation of engagement information. A duplicate of a contract rather than the original is an example of what kind of evidence?
Answer(s): A
Secondary evidence according to the legal view is acceptable if primary evidence the strongest evidence, e.g., original documents) has been destroyed or is not reasonably procurable. Secondary evidence must be a proper representation of primary evidence, e.g., copies of a contract.
Which of the following is not a required element of a contract?
The four essential elements of a contract are an agreement offer and acceptance), consideration, legal capacity of the parties to contract, and a legal objective or purpose A writing is not required to enter into a contract. However, some contracts are not enforceable unless a writing evidences the contract
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