Many Clients Have Their Data Processed at an Independent Computer

question 48

Multiple Choice

Many clients have their data processed at an independent computer service centre (IT outsourcing) . The difficulty the independent auditor faces when a computer service centre is used is:

• A) in trying to abide by the joint Code of Professional Conduct to maintain the security and confidentiality of the client's data.
• B) in determining the adequacy of the service centre's internal controls.
• C) finding compatible programs that will analyse the service centre's programs.
• D) gaining the permission of the service centre to review its work.

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Definitions:

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over time, typically measured as the percentage increase in real gross domestic product (GDP).

Mass-Consumer Society

A society characterized by the widespread consumption of goods and services, largely driven by advertising, mass production, and an emphasis on consumerism.

Muckrakers

Journalists and authors who exposed social injustices and political corruption in the early 20th century.