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Which of the following correctly describes the auditor's approach to internal control evaluation and testing where his client is a private manufacturing company whose accounting system is enhanced by internal control? A. The auditor must evaluate and perform tests of controls on all the controls in operation. B. The auditor may seek to rely on internal controls and will use his judgement to determine which, if any, controls are significant in the context of the truth and fairness of the financial statements and hence which should be confirmed by tests of controls. C. The auditor must seek to rely on those controls that provide assurance as to the truth and fairness of the financial statements. D. The auditor would not seek to rely on internal controls and will hence carry out a wholly substantive audit of transactions and balances. |