False
11 . Inventory is complex and typically considered a high-risk area in audits of service firms . ( Points : 4 ) True False
12 . An auditor can utilize a cross-sectional analysis for a client operating in multiple locations to identify areas of further inventory testing . ( Points : 4 ) True False
13 . Legal expenses are reviewed by auditors for possible litigation and related FAS 5 treatment . ( Points : 4 ) True False
14 . An imprest payroll account will never reach a zero balance .
( Points : 4 ) True False
15 . A turnaround document is an effective completeness control because they list essential information for further processing of the collection on account . ( Points : 4 ) True False
16 . Auditors will perform an analysis of leases using SFAS 13 criteria and other EITF statements to substantiate the accounting treatment .