When Auditing a Client Whose Information Is Processed by an Outside

question 30

True/False

When auditing a client whose information is processed by an outside computer service company, it is acceptable for the auditor to rely on the audit report of another independent auditor who has previously tested the internal controls of the computer service centre rather than testing the service centre's controls himself or herself.

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Definitions:

Negative Message

Communication that conveys unpleasant, disappointing, or adverse information to the recipient.

Positive Statement

A factual assertion that can be tested or verified, often contrasted with normative (opinion-based) statements.

Indirect Approach

A communication strategy where the main points are not stated directly at the beginning but are introduced gradually.

Bad News

Information that is unwelcome, distressing, or disappointing to the recipient, similar to negative messages but often more personal or impactful.