After Obtaining an Understanding of Internal Control in an Audit

Multiple Choice

After obtaining an understanding of internal control in an audit engagement, the auditor should perform tests of controls on:

A) those control activities for which reportable conditions were identified.
B) a random sample of the control activities that were identified.
C) those control activities that have a material effect upon the financial report balances.
D) those control activities that the auditor identified to reduce the assessed level of control risk.