If the Assessed Risk of Material Misstatement for an Assertion

question 66

True/False

If the assessed risk of material misstatement for an assertion is high, auditors need to gather more persuasive audit evidence.

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Definitions:

Dormant Commerce Clause

The dormant commerce clause refers to the implicit restriction in the U.S. Constitution that prohibits states from enacting legislation that discriminates against or excessively burdens interstate commerce.

Ordinance

A piece of legislation enacted by a city or town government dealing with a variety of matters like zoning, safety regulations, and public behavior.

Police Powers

The capacity of the state to regulate behavior and enforce order within its territory, often exercised to protect a community’s health, safety, and welfare.

Federalism

A system of government in which power is divided between a central authority and constituent political units, like states or provinces.