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19. In class, we discussed the notion of an audit philosophy of tests of accounts for overstatement and understatement to gain audit efficiencies. Consider the

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19. In class, we discussed the notion of an audit philosophy of tests of accounts for overstatement and understatement to gain audit efficiencies. Consider the following statements: I. When accounts payable is tested [i.e. directly; obtain specific evidence) for UNDERstatement; then conceptually, inventory purchases also is tested for UNDERstatement. II. Generally, liabilities would be tested (i.e. directly; obtain specific evidence) for UNDERstatement. a. I is true; II is true. b. I is true; II is false. c. I is false; II is true. d. I is false; II is false

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