Gross negligence is the existence of extreme or unusual negligence with the intent to deceive.( )
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The standards of reporting require that the audit report state whether the financial statements are presented in accordance with generally accepted auditing standards. ( )
Auditors are allowed to have an indirect financial interest in anAuditors are allowed to have an indirect financial interest in an audit client, such as ownership of stock in a client’s company by the auditor’s brother, as long as the amount of the financial interest is immaterial to the auditor. ( )
The auditor’s responsibility for uncovering direct-effect illegal acts is the same as for irregularities. ( )
Physical examination is more expensive than documentation and less expensive than confirmation. ( )