Assignment 1 Read each statement below carefully. Place a T on the line if you think a statement it TRUE. Place an F on the line if you think the statement is FALSE Auditor should observe and comply with the ethical requirements of Code of Ethics for professional accountant. An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as audit financial statments. Audit committee should observe and comply with the ethical requirements of Code of Ethics for professional accountant. It is easy for auditors to understand that their clients may try to deceive them throughout the audit process. Audit committee hires the independent auditor. The external users can rely upon the auditor's report to reduce information risk. The client provides capital to the external users. An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a compliance audit. The company's board of directors should observe and comply with the ethical requirements of Code of Ethics for professional accountant. Auditors do not provide assurance on corporate sustainability reports Auditors do not provide absolute assurance on the financial statements including assuming responsibility for them. Auditors do not provide assurance on the effectiveness of internal controls over financial reporting Auditors do not provide assurance on financial statements