After Obtaining an Understanding of Internal Controls and Assessing Control

question 2

Multiple Choice

After obtaining an understanding of internal controls and assessing control risk on the audit of a nonpublic 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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