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When internal controls are not effective, then substantive audit tests are less reliable; thus, the extent of substantive tests should be reduced. ( )

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Tests of controls are generally performed to reduce other substantive tests because they provide evidence about the likelihood of material misstatements. ( )

Sampling risk results from the auditor’s failure to recognize exceptions in transaction data. ( )

Confirmation is the most common test of details of balances for the accuracy of accounts receivable. ( )

List the six organizational structures available to CPA firms:______ ______ ______ ______ ______ ______

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