A Computer Service Centre Processes, for an Auditor's Client, Financial

question 75

Multiple Choice

A computer service centre processes, for an auditor's client, financial data that has a material effect on that client's financial statements. The independent auditor need NOT consider a review of the service centre controls if:

• A) he or she is satisfied that a special report on internal controls issued by the service centre's independent auditor can be relied on to the extent desired.
• B) the service centre is a partially owned subsidiary of the client company, whose financial statements are examined by another audit firm.
• C) the service centre processes data exclusively for the audit client and its subsidiaries.
• D) the service centre controls have already been reviewed by the internal audit team of the client.

---

Definitions:

Delayed Gratification

The ability to resist the temptation for an immediate reward and wait for a later reward, often perceived as more beneficial.

Responsibilities

Duties or tasks that one is obliged or expected to perform.

Genogram

A graphic representation of a family tree that displays detailed data on relationships among individuals, used to identify patterns and psychological factors that run through families.

Interactional Patterns

Interactional patterns are the recurring ways in which individuals interact or communicate within relationships, influenced by personal and cultural factors.