When a Client Uses a Service Organization to Process Certain

question 87

Multiple Choice

When a client uses a service organization to process certain transactions (e.g. ,its employee benefit plan) ,the auditor is least likely to obtain an understanding relating to these transactions by

• A)Contacting the service organization to obtain specific information.
• B)Visiting the service organization and performing procedures.
• C)Sending a confirmation request to the service organization.
• D)Obtaining and reading a Type 1 or Type 2 report from the service organization.

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Definitions:

Sale Price

The final price at which a product or service is sold to consumers.

Bargaining Position

Bargaining position refers to the relative power or advantage one party has over another during negotiations, influencing the terms and outcomes.

Car Dealer

A business that sells new or used automobiles, typically employing salespeople to negotiate prices with customers.

Competing Car Dealer

An automobile dealership that actively competes with others for customers in a specific market.