16-These two conditions are generally present when material misstatements due to fraud occurincentives and opportunities. *

True

False

17-The larger the sample, the lower the confidence level and the lower the sampling risk. *

True

False

18-A company lists a Building as PP&E, when in fact the title to the building is held in the name of the company's owner and has never been transferred to the company. This is an example of valuation and allocation. *

True

False

19-Type 1 Sampling Risk is the risk that the auditors conclude that the control is not effective when in fact the control works effectively. *

True

False

20-Discussing the adequacy of the allowance for doubtful accounts with the credit manager is an example of inquiry. *

True

False