When an Audit Client Uses a Service Organization to Manage

question 127

Multiple Choice

When an audit client uses a service organization to manage their investment activity,

• A) the auditor can always rely on the internal controls of the service organization.
• B) the auditor must state in their audit opinion that the client uses a service organization.
• C) the auditor can rely on the internal controls of the service organization if the service organization's auditor issues a report on their internal control.
• D) the auditor must rely on the service organization to determine the fair level 1, 2, and 3 estimates.

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Definitions:

Reconstruction

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The set of laws and regulations governing the use, development, and preservation of land, often shaping the patterns of land ownership and land use in a country or region.

Southern Politics

The political landscape and history unique to the southern United States, characterized by distinct regional issues, identities, and alignments.

Racial Violence

Aggressive behavior or actions aimed at individuals or groups based on their race or ethnicity, often to maintain or assert dominance.