TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.11) If all transaction-related audit objectives are met, the auditor does not need to perform substantive 11) test of balances to meet the realizable value audit objective. 12) One factor that determines the amount of additional evidence required for tests of controls is the 12) planned reduction in control risk. 13) Auditing standards require a written audit program. 13) 14) The choice of which types of tests to use and how extensively they need to be performed must be 14) the same for all audits.15) Tests of controls provide evidence about the likelihood for misstatements in a client's financial 15) statements. 16) If internal controls are tested and are considered effective, the auditor generally will increase both 16) substantive tests of transactions and tests of details of balances. 17) Analytical procedures are the least costly type of audit test. 17) 18) Assume the beginning balance in cash was audited in the prior year and is considered to be correct. 18) In the current year, the auditor verifies that sales and cash receipts transactions are correctly recorded in the accounting records and posted to the general ledger. Before the auditor can reach a conclusion about the ending balance in the cash account in the current year, cash disbursement transactions will have to be audited. 19) Auditors can perform tests of controls separately from all other tests; therefore, it is inefficient to 19) perform tests of controls, separately, from substantive tests of transactions. 20) An example of auditor using disaggregated data to increase the precision of the auditor's 20) expectations using substantive analytical procedures in the audit of inventories would be to calculate gross margin by product line, rather than calculating the total gross margin for total sales in the planning stage of the audit