Computer Services Company (CSC) Processes Payroll Transactions for Schools

question 973

Multiple Choice

Computer Services Company (CSC) processes payroll transactions for schools. Drake, CPA, is engaged to report on CSC's internal controls placed in operation as of a specific date. These internal controls are relevant to the schools' internal control, so Drake's report will be useful in providing the schools' independent auditors with information necessary to plan their audits. Drake's report expressing an opinion on CSC's internal controls placed in operation as of a specific date should contain a(an) :

• A) Description of the scope and nature of Drake's procedures.
• B) Statement that CSC's management has disclosed to Drake all design deficiencies of which it is aware.
• C) Opinion on the operating effectiveness of CSC's internal controls.
• D) Paragraph indicating the basis for Drake's assessment of control risk.

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Definitions:

Mental Health

Refers to the emotional, psychological, and social well-being of an individual, affecting how they think, feel, and act in daily life.

Schizotypal

Relating to or denoting a personality disorder marked by severe social anxiety, thought disorder, paranoid ideation, derealization, transient psychosis, and often unconventional beliefs.

Idiosyncratically

In a manner that is peculiar or unique to an individual; distinctly characteristic of a particular person.

Obsessive-compulsive

A disorder characterized by uncontrollable, recurring thoughts (obsessions) and behaviors (compulsions) that the individual feels the urge to repeat.