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.

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Definitions:

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The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.