In an Audit of Financial Statements of a Nonpublic Company

Multiple Choice

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

A) Document his or her understanding of the entity's internal control.
B) Search for significant deficiencies in the operation of 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.