The auditor’s responsibility for uncovering direct-effect illegal acts is the same as for irregularities. ( )
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Physical examination is more expensive than documentation and less expensive than confirmation. ( )
One purpose of performing preliminary analytical procedures in theOne purpose of performing preliminary analytical procedures in the planning phase of an audit is to help the auditor make a preliminary assessment of control risk. ( )
Acceptable audit risk and planned detection risk are inverselyAcceptable audit risk and planned detection risk are inversely related; i.e., as acceptable audit risk increases, planned detection risk should decrease, ceteris paribus. ( )
All known related parties must be identified and included in the auditor’s permanent files related to the client. ( )