In an Audit of Financial Statements of a Non-Public Company

Multiple Choice

In an audit of financial statements of a non-public company in accordance with generally accepted auditing standards, an auditor is required to:

A) document the auditor's understanding of the entity's internal control.
B) search for significant deficiencies in the operation of the internal controls.
C) perform tests of controls to evaluate the effectiveness of the entity's accounting system.
D) determine whether control activities are operating effectively to prevent or detect material misstatements.