T/F for the following

QUESTION 1 4 points Save Answer The users of the financial statements of Tanman & Co. (Tanman) filed a lawsuit against their external auditors, Ezay Inc. In order to prevail in the lawsuit, the users of the financial statements do not have to prove that they suffered a loss if they can prove that Ezay knew the financial statements were misleading True False QUESTION 2 4 points Save Answer Test of controls can be replaced with substantive testing. True False QUESTION 3 4 points Save Answer Vouching is a form of directional testing, which focuses on selecting recorded transaction samples and verifying the transactions with the source documents. True False QUESTION 4 4 points Save Answer The external auditor considers materiality in determining significant locations. True False QUESTION 5 4 points Save Answer The users of financial statements rely on the opinion of external auditors as external auditors provide guarantees that the financial statements are free from material misstatements. True FalseQUESTION 6 4 points Save Answer A high risk of material misstatement can pose a threat to the audit objectives but not to the organization. True False QUESTION 7 4 points Save Answer The users of financial statements can tend to believe that an unqualified report means investments decisions can be based on such report with no consequences. This creates an expectation gap. True False QUESTION 8 4 points Save Answer Prevention and detection controls are synonymous and thus achieve the same purpose. True False QUESTION 9 4 points Save Answer The external auditor's professional judgement can be applied in the context of materiality. True False QUESTION 10 4 points Save Answer Control activities may be implemented both at the organizational level and at the transaction level. True False