An Audit Client Outsources Portions of Its IT System to a Cloud

question 7

Multiple Choice

An audit client outsources portions of its IT system to a cloud service provider.Which type of report would a report on management's description of the service organizations system and operating effectiveness of controls?

• A)Change request report.
• B)Type 1 report.
• C)Type 2 report.
• D)OE report.

---

Definitions:

Trademark

A symbol, word, or phrase legally registered or established by use as representing a company or product.

Intangible Assets

Assets that lack physical substance and represent economic benefits, such as patents, copyrights, and brand recognition.

Fixed Assets

Long-term assets bought for use in the operation of a business, not intended for resale, such as machinery, buildings, and vehicles.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value on the balance sheet.