Mohammad Ahmed is responsible for preparing bank reconciliation statements at Ajax Ltd. Ajax Ltd. has many bank accounts, including separate accounts for each major branch, imprested accounts for salaries and dividends, and accounts kept in foreign currency for overseas divisions. Mohammad maintains records including bank statements and weekly bank reconciliations for each account. In addition, there are files containing correspondence with banks about disputed transactions, dishonored cheques from Ajax Ltd.'s customers, and other bank-initiated transactions such as fees and interest.
Required
(a) Comment on the persuasiveness of the evidence in Mohammad's files for Ajax Ltd.'s financial statement audit.
(b) Explain how an auditor would obtain more persuasive evidence for the relevant assertions for the bank accounts at Ajax Ltd.