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:

Decision Making

Decision making is the cognitive process of selecting a course of action from multiple alternatives, often involving elements of judgment, evaluation, and analysis.

Unity of Command

A principle in management and organizational design that mandates each employee is accountable to one and only one supervisor, ensuring clear instruction and direction.