If internal controls over the expenditure cycle are weak,auditors will need to design substantive procedures to try to detect whether control failures have produced misleading financial statement account balances.

Question

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This statement is true. If there are weak internal controls over the expenditure cycle, auditors cannot rely on those controls to ensure the accuracy of financial statement account balances. Instead, they will need to perform substantive procedures to test those balances and identify any potential errors or misstatements that may have resulted from control failures.

If Internal Controls Over the Expenditure Cycle Are Weak,auditors Will