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.