After Obtaining an Understanding of Internal Controls and Assessing Control

question 56

Multiple Choice

After obtaining an understanding of internal controls and assessing control risk on the audit of a non-public company, an auditor decided to perform tests of controls. The auditor most likely decided that:

• A)it would be efficient to perform tests of controls that would result in a reduction in planned substantive tests.
• B)additional evidence to support a further reduction in control risk is not available.
• C)an increase in the assessed level of control risk is justified for certain financial statement assertions.
• D)there were many internal control weaknesses that could allow errors to enter the accounting system.

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