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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)