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.

---

Definitions:

Society

A group of individuals living together in a more or less ordered community, sharing common traditions, institutions, and values.

Stock Split

Current shareholders are given some number (or fraction) of shares for each share owned. Thus, in a three-for-one split, each shareholder would receive three new shares in exchange for each old share, thereby tripling the number of shares outstanding. Stock splits usually occur when the stock price is outside of the optimal trading range.

Shares

Units of ownership interest in a corporation or financial asset, providing an equal distribution in any profits, if any are declared, in the form of dividends.

Trades

The act of buying, selling, or exchanging financial instruments, commodities, or other tangible or intangible items between parties.