The risk of management override of controls exists in just about every audit. Therefore, auditors must perform certain features in every audit, including examining journal entries and other adjustments, for evidence of possible misstatements due to fraud.

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The statement is true. Management override of controls is a commonly recognized fraud risk, and auditors are required to examine journal entries and other adjustments for evidence of possible misstatements due to fraud. This is a standard audit procedure designed to detect and prevent financial statement fraud.

The Risk of Management Override of Controls Exists in Just