PCAOB standards are used to conduct the audit for public companies. * True False If an auditor assigns a tolerable misstatement of $1,000 to accounts payable, he or she would need to obtain less audit...

Extracted text: PCAOB standards are used to conduct the audit for public companies. * True False If an auditor assigns a tolerable misstatement of $1,000 to accounts payable, he or she would need to obtain less audit evidence for that account than if $100,000 had been assigned. * True False An engagement letter establishes a clear understanding of the terms of the engagement between the client and the auditor. * True False