An Auditor's Risk Assessment Is Based on the Assumption That

Multiple Choice

An auditor's risk assessment is based on the assumption that controls are operating effectively. Which of the following was not a step in making this assessment?

A) Evaluate the effectiveness of the internal controls with tests of controls.
B) Obtain an understanding of the entity's accounting system and control environment.
C) Perform tests of details of transactions to detect material misstatements in the financial statements.
D) Consider whether control activities can have a pervasive effect on financial statement assertions.