The skills and personal qualities of external auditors is considered a factor in conducting a quality audit. O True O False QUESTION 42 An example of reperformance is the audit procedure of reviewing shipping documents as evidence of the occurrence of sales. O True O False QUESTION 43 External auditors rely extensively on the work of internal auditors during the execution of financial statement audits. O True O False QUESTION 44 The external auditor may use due care as a defense under the Securities Act of 1933. O True O False QUESTION 45 The external auditor needs to understand a client's internal controls in order to develop appropriate audit procedures. O True O FalseQUESTION 46 Sampling for testing the effectiveness of controls is also known as monetary unit sampling. True O False QUESTION 47 External auditors provide complete assurance that the financial statements are free of material misstatements. O True O False QUESTION 48 The users of financial statements can tend to believe that an unqualified report means investments decisions can be based on such report with no consequences. This creates an expectation gap. O True O False QUESTION 49 A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. O True O False QUESTION 50 An external auditor validating that a company has an effective internal control can draw a conclusion that the financial statements are free of material misstatements due to the effective controls. O True O False