diff --git a/shared/utils/tests/setup_logging_test.py b/shared/utils/tests/setup_logging_test.py
new file mode 100644
index 0000000..af05f32
--- /dev/null
+++ b/shared/utils/tests/setup_logging_test.py
@@ -0,0 +1,38 @@
+"""Definition of tests for setup_logging function."""
+
+import logging
+import os
+import unittest
+
+from shared.utils import setup_logging
+
+
+class TestFunctionSetupLogging(unittest.TestCase):
+    """Testing function setup_logging."""
+
+    def setUp(self):
+        # set log level names to test
+        self.env_var_name = 'LOG_LEVEL'
+        self.log_level_list = [
+            'debug',
+            'info',
+            'error',
+        ]
+        self.wrong_log_level_name = 'weird_name'
+
+    def test_log_level_gets_set(self):
+        """Test that function updates the logging level of the root logger."""
+        for log_level in self.log_level_list:
+            # set env var
+            os.environ[self.env_var_name] = log_level
+            # execute function
+            setup_logging()
+            # get logger
+            logger = logging.getLogger()
+            # check log level
+            level_number = getattr(logging, log_level.upper())
+            self.assertEqual(logger.getEffectiveLevel(), level_number)
+
+
+if __name__ == '__main__':
+    unittest.main()