Physical examination is more expensive than documentation and less expensive than confirmation. ( )
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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. ( )
Two major factors that affect acceptable audit risk are the likely users of the financial statements and the likelihood of issuing an unqualified audit opinion. ( )