Payroll Data Co

Multiple Choice

Payroll Data Co. (PDC) processes payroll transactions for a retailer. Cook, CPA, is engaged to express an opinion on a description of PDC's internal controls placed in operation as of a specific date. These controls are relevant to the retailer's internal control, so Cook's report may be useful in providing the retailer's independent auditor with information necessary to plan a financial statement audit. Cook's report should:

A) Contain a disclaimer of opinion on the operating effectiveness of PDC's controls.
B) State whether PDC's controls were suitably designed to achieve the retailer's objectives.
C) Identify PDC's controls relevant to specific financial statement assertions.
D) Disclose Cook's assessed level of control risk for PDC.