The two phases of the auditors involvement with internal control are sometimes called understanding and assessment and tests of controls. In the tests of controls phase, the auditor attempts to obtain

a. A reasonable degree of assurance that the clients internal controls are operating effectively on a consistent basis throughout the year.

b. Sufficient, competent evidential matter to afford a reasonable basis for the auditors opinion.

c. Assurances that informative disclosures in the financial statements are reasonably adequate.

d. Knowledge and understanding of the clients prescribed procedures and methods.