QUESTION 42 2 points Save Answer Which of the following statements is false? Either an overstatement of an asset account or an overstatement of a liability account would have the same effect on the income statement. A misclassification in the balance sheet will have no effect on operating income. Either an understatement of an asset account or an overstatement of a liability account would have the same effect on the income statement. Either an overstatement of an asset account or an understatement of a liability account would have the same effect on the income statement. QUESTION 43 2 points Saved Which of the following is part of planning? Estimate total misstatement in the segment. Estimate the combined misstatement. imated with preliminary judgment Compare the combined est Set materiality for the financial statements as a whole. QUESTION 44 2 points Save Answer A control that relates to all parts of the IT system is called a(n) systems control. general control. universal control. applications control QUESTION 45 2 points Save Answer Internal controls are implemented by and are the responsibility of the auditors. guarantee that the company complies with all laws and regulations. consist of policies and procedures designed to provide reasonable assurance that the company achieves its objectives and goals. only apply to SEC companies. QUESTION 46 2 points Save Answer An auditor should consider two key issues when obtaining an understanding of a client's internal controls. These issues are the design and operating effectiveness of the controls. the effectiveness and efficiency of the controls. the frequency and effectiveness of the controls. the implementation and operating effectiveness of the controls. QUESTION 47 2 points Save Answer If a company has an effective internal audit department, it can reduce external audit costs by providing direct assistance to the external auditors. the internal auditors must be CPAs in order for the external auditors to rely on their work. the intermal auditors can express an opinion on the fairness of the financial statements