3-22 (OBJECTIVE 13-1) The following questions deal with tests of controls. Choose the best response. a. To support the auditor's initial assessment of control risk below maximum, the audi- tor performs procedures to determine that internal controls are operating effectively. Which of the following audit procedures is the auditor performing? (1) Tests of controls (3) Tests of details of balances (2) Substantive tests of transactions (4) Tests of trends and ratios b. The primary objective of performing tests of controls is to obtain (1) sufficient appropriate audit evidence to afford a reasonable basis for the auditor's opinion, without the need for additional evidence. (2) a reasonable degree of assurance that the client's internal controls are operating effectively on a consistent basis throughout the year. (3) assurances that informative disclosures in the financial statements are reason- ably adequate. (4) knowledge and understanding of the client's prescribed procedures and methods. c. Tests of controls are most likely to be omitted when (1) an account balance reflects many transactions. (2) control risk is assessed at less than the maximum. (3) the understanding of internal control indicates that evaluating the effectiveness of control policies and procedures is likely to be inefficient. (4) the auditor wishes to increase the acceptable level of detection risk.