When a Client Uses a Service Center for Processing Transactions

question 17

Multiple Choice

When a client uses a service center for processing transactions,

• A) the auditor can assume that the controls are adequate because it is an independent enterprise.
• B) auditing standards require the auditor to test the service center's controls if the service center application involves processing significant financial data.
• C) and the user auditor decides to rely on the service auditor's report, the user auditor must make reference to the report of the service auditor in the opinion on the user organization's financial statements.
• D) none of the above.

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Definitions:

Mammogram

An X-ray of the breast.

Discolored

Changed in color in a way that is less attractive or indicates damage or decay.

Breast Tissue

The fibrous, glandular, and fatty tissue that makes up the breasts, essential for milk production and delivery in females.

Barium Enema

A diagnostic test that involves filling the colon with barium contrast material to make the lower gastrointestinal tract visible on an X-ray.