4 . When control risk is assessed at a maximum level , the auditor assumes that the internal controls are reliable in preventing or detecting material misstatements . ( Points : 4 )
True False
5 . Accounting subsystems are accounting cycles composed of one or more accounting applications . ( Points : 4 )
True False
6 . Presentation and disclosure assertions imply that all transactions and balances are properly presented , disclosures represent what actually happened , and the footnote disclosures are appropriate and adequate . ( Points : 4 )
True False
7 . Vouching recorded transactions involves taking a sample from the journal and tracing them back to the source documents to ensure they occurred . ( Points : 4 )