true or false if false, make statement true

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 shareholders 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 nuts and monitors central computers in accordance with standard instructions

30. Evidence of property ownership is best obtained by reviewing construction contract used to build the company facilities