In his examination of financial statements, the CPA is concerned with the examination and accumulation of accounting evidence.

Required:

a. What is the objective of the CPA's examination and accumulation of accounting evidence during the course of his audit?

b. The source of the accounting evidence is of primary importance in the CPA's evaluation of its quality. Accounting evidence may be classified according to source. For example, one class originates within the client's organization, passes through the hands of third parties, and returns to the client, where it may be examined by the auditor. List the classifications of accounting evidence according to source, briefly discussing the effect of the source on the reliability of the evidence.

c. In evaluating the quality of the accounting evidence the CPA also considers factors other than the sources of the evidence. Briefly discuss these other factors.