When Auditing a Private Company, the Auditor Should Obtain an Understanding

Multiple Choice

When auditing a private company, the auditor should obtain an understanding of internal control sufficient to:

A) provide reasonable protection against client fraud and defalcations by client employees.
B) assess control risk.
C) provide a basis for suggestions to the client for improving the accounting system.
D) provide a method for safeguarding assets, checking the accuracy and reliability of accounting data, promoting operational efficiency, and encouraging adherence to prescribed managerial policies.