Many Clients Have Their Data Processed at an Independent Computer

question 56

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 lies in:

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

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Definitions:

Self-reward

A personal incentive one gives oneself as a form of recognition for achieving a goal or completing a task.

Left-brain Thinking

Logical, analytical, and objective thought processes associated with the left hemisphere of the brain.

Conceptual Age

A period in human history characterized by the value of creativity, empathy, and conceptual thinking in the economy.

Fear

An unpleasant emotion caused by the belief that someone or something is dangerous, likely to cause pain, or a threat.