The revenue recognition accounting standard (ASC 606) specifies for a customer to have obtained control of a product in a bill-and-hold arrangement, all of the following criteria must be met: 

• The reason for the bill-and-hold arrangement must be substantive (for example, the customer has requested the arrangement). 
• The product must be identified separately as belonging to the customer. 
• The product currently must be ready for physical transfer to the customer. 
• The entity cannot have the ability to use the product or to direct it to another customer. 

Required: 

Identify and discuss the reliability of the types of evidence an auditor would need to determine whether each condition cited above was met for a bill and hold transaction.