1.Performance materiality is the magnitude of misstatements that individually or when aggregated with other misstatements could reasonably be expected to influence the economic decisions of users made on the basis of the financial statements

True False

2.Auditing standards require that the auditor gain an understanding of internal control and assess control risk

True

False

3.

For all audits (public and private companies) in the U.S., auditing standards require that the audit test internal controls and report on the effectiveness of internal controls over financial reporting

True

False