TRUE OR FALSE

37. An auditor assesses detection risk but restricts control risk.

38. Physical inspection of inventories not only verifies the existence assertion but also verifies rights and valuation.

39. Both qualitative and quantitative factors must be considered when establishing audit planning materiality, which is the materiality level that is allocated to individual accounts.

40. The direction of testing for unsupported entries in the general ledger starts with the supporting documents that are then traced to the GL.

41. Moving from the general ledger to the supporting documentation is called tracing; and moving from the supporting documentation to the GL is called vouching.