Chapter 4, Problem 8TFQ

To determine

Concept introduction: An audit is an independent examination conducted to ensure that the financial statements are true and fair. Auditing standards are certain defined rules and regulation that provide guidance to the auditors for conducting the audit efficiently and effectively. The auditing standards are followed to fulfill the objective of audit.

Professional skepticism is one of the qualities of an auditor. An auditor needs to be inquisitive and alert to the situations indicating possible misstatement or fraud.

To indicate:Whether the given statement is true or false.