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)