In the financial statement audit of a nonpublic company, the auditor decides to perform tests of the controls related to the occurrence of sales transactions. Which of the following best explains why the auditor decided to test these controls? (1) In a nonissuer financial statement audit, the auditor is required to test the operating effectiveness of internal controls. (2) The auditor wants to obtain an understanding of the design of the internal controls. (3) Control risk is assessed at below the maximum. (4) The auditor wants to obtain an understanding of the implementation of the internal controls.
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