Modified True False if they are "true". then write the word "true" in the space provided, If the statement is false, you must change the statement. so that it is becomes "true".

19. In end-user computing, data collection is stored centrally on-the-cloud. 20. When auditing a firm with an integrated computer system it is important to compare data on separate files. 21. A comfort letter is a letter to shareholders regarding compliance with the Securities Act of 1933. 22. Personal financial statements include an Income Statement and Balance Sheet. 23. To verify the account, "Appropriation of Retained Earnings For Plant Expansion", an auditor would ask the company CFO to verify the appropriation. 24. An organization that manages the legal records which include the names of the sharcholders of a company is the specialist on the stock exchange: 25. The transactions involving purchase orders being received by other companies should be reconciled by comparing the accounts payable ledger with the sales journal. 26. The issuance of long-term debt is authorized by the bond holders. 27. Using Figure 9.4 with a risk of assessing control risk too low, assume that auditors. expect the deviation rate in the population to be 1%, and a 7% tolerable deviation rate to justify their planned assessed level of control risk related to the control. Under these assumptions, the sample size would be 156 which must contain no more than 2 control deviations. 28. Based on the questions above, instead three (3) deviations are found in the sample. Using Figure 9.5, the tolerable deviation rate would be increased to 11.5%. 29. The database administrator in the IT Dept. of a company runs and monitors central computers in accordance with standard instructions. 30. Evidence of properiy ownership is best obtained by reviewing construction contracts used to build the company facilities