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Problem 1: Which of the following statements about understanding internal control is not true:
a. The auditor uses the knowledge of the system of internal control to design further audit procedures to collect evidence.
b. In the presence of a strong system of internal control, the auditor may choose to collect less evidence about transactions or balances.
c. In the audit of a private company, it is necessary to express an opinion on the system of internal control over financial reporting.
d. A thorough understanding of the system of internal control assists the auditor in identifying potential types of misstatements.
e. A thorough understanding of the system of internal control assists the auditor in understanding the risk of material misstatements.
Determine how The receipt of cash from a customer in advance for work not yet performed was recorded as a revenue. This error would
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Lance contributed investment property worth $617,500, purchased Three years ago for $427,500 cash, What is Cloud Peak's basis in the contributed property
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