As an intern for A.C Delgado CPAs, your supervisor handed you the following audit control assessment and possible test planning for Jasper PaceSetter, Inc. a nonpublic company. Your supervisor wants to complete the table and come to his office for a meeting where you are expected to defend how you came with your conclusions. Complete the following Table in expecting of your meeting with your supervisor. Use the items in italics in column one as options for completing the table.

	Case A—Controls Appear Strong; Auditor Decides to Test Controls to Extent Possible*			Case B—Controls Appear Strong, but Auditor Does Not Test*	Case C—Controls Appear Weak*
At what level is planned assessed level of control risk? ( low; maximum)
Describe the scope of tests of control that will be performed. (none; tests performed)
Results of Tests of Controls	A(1)— Controls strong (operated effectively)		A(2) Controls ineffective	N/A	N/A
At what level is the assessed level of control risk? (low; maximum)
(a) What is the acceptable level of detection risk? (low; high)
(b) Describe the scope (nature, timing, and extent) of substantive tests. (high; low) Explain reasoning

Inherent risk is assessed at the maximum level; evaluation of controls is based on management’s description.