Audit Firms Should NOT Customize the Audit Programs Based on the Assessment

question 77

True/False

Audit firms should NOT customize the audit programs based on the assessment of the risk of material misstatement when auditing long-lived assets.

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Definitions:

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure on default.

Original

In legal and official documents, "original" refers to the first form or version of a document that has not been copied, altered, or replicated.

Obligation

A legal or moral duty to do or refrain from doing something.

Statute of Frauds

a legal principle that requires certain types of contracts to be written and signed by the party being charged with the obligation to be enforceable.