It is important for the auditor to understand client issues at the

entity and economy levels.

industry and economy levels.

entity, industry, and economy levels.

entity and industry levels.

Effective closing procedures eliminate the risk of material misstatement.

True

False

The auditors opinion indicates that the financial statements are

true and fair.

correct.

true and correct.

fairly stated.

When past estimates have been relatively accurate, this indicates

management is lacking the appropriate expertise.

a high degree of estimation uncertainty.

weak controls exist over estimate calculations.

management processes are reliable.