Auditors should design the audit to provide reasonable assurance of detecting material misstatements of financial statements or other financial data resulting from noncompliance with provisions of contracts or grant agreements that have a direct and material effect on the determination of financial statement amounts.
The senior auditors do the designing of the audit. 
mnli hypothesis: The senior auditors do the designing of the audit.  premise: Auditors should design the audit to provide reasonable assurance of detecting material misstatements of financial statements or other financial data resulting from noncompliance with provisions of contracts or grant agreements that have a direct and material effect on the determination of financial statement amounts.