True or False?

1. Generally accepted auditing standards provide detailed guidance on how auditors are to establish a preliminary materiality level, thus eliminating the need for subjective auditor judgment in this task.

2. Control risk and the amount of substantive evidence required are directly related, i.e., as control risk increases, the amount of substantive evidence the auditor plans to accumulate should increase.

3. An acceptable audit risk assessment of low indicates a risky client requiring more extensive evidence, assignment of more experienced personnel, and/or a more extensive review of working papers