A Computer Service Centre Processes, for an Auditor's Client, Financial

question 31

Multiple Choice

A computer service centre processes, for an auditor's client, financial data that has a material effect on that client's financial statements.The independent auditor need NOT consider a review of the service centre controls if:

• A) he or she is satisfied that a special report on internal controls issued by the service centre's independent auditor can be relied on to the extent desired.
• B) the service centre is a partially owned subsidiary of the client company, whose financial statements are examined by another audit firm.
• C) the service centre controls have already been reviewed by the internal audit team of the client.
• D) the service centre processes data exclusively for the audit client and its subsidiaries.

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Definitions:

Dysfunctional Behaviors

Actions or behaviors that are harmful or abnormal, often undermining individual well-being and social harmony.

Patterned Behavior

Regular or predictable ways of acting or responding that are characteristic of an individual or group, often based on habits or social norms.

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognition, and inner experience.

Dysfunctional Behavioral Pattern

A recurring, maladaptive behavior that adversely affects an individual's ability to function in daily life.