When the Auditor Is Obtaining an Understanding of the Independent

question 123

Multiple Choice

When the auditor is obtaining an understanding of the independent computer service center's internal controls, the auditor should

• A) use the same criteria used to evaluate the client's internal controls.
• B) use different criteria because the service center resides outside the company.
• C) use the same criteria used to evaluate the client's internal controls but omit tests of transactions.
• D) use different criteria for the service center by including substantive tests of balances.

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Definitions:

Effort

The use of physical or mental energy to do something; exertion towards accomplishing a task.

Persistence

The continued effort to achieve something despite difficulties, failure, or opposition.

Motivation

Represents the internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject.

Intrinsic Motivation

The drive to perform activities for their own sake and for the personal rewards they bring, rather than for external rewards.