Many Clients Have Outsourced Their IT Functions

question 13

Multiple Choice

Many clients have outsourced their IT functions.The difficulty the independent auditor faces when a computer service center is used is to:

• A)gain the permission of the service center to review their work.
• B)find compatible programs that will analyze the service center's programs.
• C)determine the adequacy of the service center's internal controls.
• D)try to abide by the Code of Professional Conduct to maintain the security and confidentiality of client's data.

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Definitions:

Long-Term Liabilities

Debts or obligations a company owes that are due beyond one year's time, such as bonds payable, long-term leases, or pension obligations.

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having a vote in corporate matters.

Acquisition

Acquiring authority of another company by buying or swapping stocks.

Fair Values

An alternative phrasing for fair value, indicating the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.