In Obtaining an Understanding of an Entity's Internal Control in a Financial

question 44

Multiple Choice

In obtaining an understanding of an entity's internal control in a financial statement audit of a nonpublic company, an auditor is not obligated to:

• A)determine whether the control activities have been placed in operation.
• B)perform procedures to understand the design of the internal control policies.
• C)document the understanding of the entity's internal control components.
• D)search for significant deficiencies in the operation of the internal control.