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) True False
8. Audit documentation serves as support for the financial statements.
( Points: 4) True False
9. In analysis of the results of audit sampling, an auditor may determine that the sample size must be increased.( Points: 4) True False
10. The revenue cycle considered by auditors includes the sales process but not collections.( Points: 4)
True