Final answer:
True, Auditors are not always required to obtain bank confirmations when there is low audit risk, reliable alternative evidence exists, or the cash balances are not material to the financial statements.
Step-by-step explanation:
It is true that auditors are not always required to obtain bank confirmations. A bank confirmation is an audit procedure where auditors verify the cash balances of a company as reported on their financial statements by requesting a confirmation of the amounts held on deposit directly from the bank. However, there are circumstances under which an auditor may determine that obtaining a bank confirmation is not necessary. This could be due to the audit risk being low, the existence of alternative audit evidence that is sufficiently reliable, or when the financial statements do not have a material cash balance that would warrant direct confirmation.