Sela Smith, CPA, is auditing a nonissuer client. Smith knows that to assess the risk of material misstatement, she must understand the client's internal controls. However, after considering the cost-benefit principle and the need for audit efficiency, Smith may not obtain an understanding of all the client's internal controls over financial reporting. Which section of generally accepted auditing standards best describes Smith's responsibility for obtaining an understanding of internal control?

Sela Smith, CPA, is auditing a nonissuer client. Smith knows that to assess the risk of material misstatement, she must understand the client's internal controls. However, after considering the costbenefit principle and the need for audit efficiency, Smith may not obtain an understanding of all the client's internal controls over financial reporting. Which section of generally accepted auditing standards best describes Smith's responsibility for obtaining an understanding of internal control? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list. \\( \\S \\) Some examples of correctly formatted AR-C responses are AR-C12.34, AR-C12.A34, AR-C12.A345