Regardless of the assessed level of control risk, an auditor of a non-public company would perform some:
A)tests of controls to determine the effectiveness of internal control policies.
B)analytical procedures to verify the design of internal control activities.
C)substantive tests to restrict detection risk for significant transaction classes.
D)dual purpose tests to evaluate both the risk of monetary misstatement and preliminary control risk.

Question

Quizplus · Accepted Answer

Regardless of the assessed level of control risk, an auditor of a non-public company would always perform substantive tests to restrict detection risk for significant transaction classes. Tests of controls and analytical procedures may be performed depending on the assessed level of control risk. Dual purpose tests are performed to evaluate both monetary misstatement risk and control risk, but not necessarily for every audit engagement.

Regardless of the Assessed Level of Control Risk, an Auditor