Which of the following is true regarding the relationship between tests of controls and procedures to obtain an understanding? A) In obtaining an understanding of internal control, the procedures to obtain an understanding are applied to all controls identified during that phase. B) Tests of controls are applied only when the assessed control risk has not been satisfied by the procedures to obtain an understanding. C) Procedures to obtain an understanding are performed only on one or a few transactions. D) All of the above are correct.

Answer: D