[Anonymous]

Can someone explain the answer to me? For some reason I thought the answer was C.

An auditor of a nonissuer should design tests of details to ensure that sufficient audit evidence supports which of the following?

a. The planned level of assurance at the relevant assertion level.

b. The planned level of control risk.

c. The effectiveness of internal controls.

d. Management’s assertions that internal controls exist and are operating efficiently.

Explanation

Choice “a” is correct. An auditor of a nonissuer should design tests of details to ensure that sufficient audit evidence supports the planned level of assurance at the relevant assertion level.

Choice “b” is incorrect. Test of controls, not test of details, would support the planned level of control risk.

Choice “d” is incorrect. Test of controls, not test of details, would help evaluate management’s assertions that internal controls exist and are operating effectively.

Choice “c” is incorrect. The objective of tests of controls is to evaluate whether a control operated effectively.