Which of the following statements are true regarding internal controls and internal control testing? Select all statements that are true. (1 point for each correct selection and minus 1 point for each incorrect selection.) Group of answer choices:

Design of the internal controls are management's responsibility.

Auditors issue an opinion regarding the effectiveness of internal controls for a private company.

If control risk has been assessed as high, the auditor should test the effectiveness of internal controls to reduce substantive balance testing.

If the auditor is not planning to rely on internal controls in her audit plan, she is still required to perform a walkthrough of internal controls.

A failed control is referred to as a deficiency. Material weaknesses are lesser impact and magnitude than significant deficiencies.

All deficiencies are significant deficiencies. All material weaknesses are deficiencies.

The auditor is not required to report significant deficiencies and material weaknesses to those charged with governance.

Narratives, flowcharts, questionnaires, inquiries, document inspection, and observation of activities are sources of information and evaluation techniques to assess internal controls. Once the preliminary planning assessment of control risk is made, the auditor should never change that initial determination.