When Auditing a Client Whose Information Is Processed by an Outside

question 51

True/False

When auditing a client whose information is processed by an outside service provider, it is not acceptable for the auditor to rely on the audit report of another independent auditor who has previously tested the internal controls of the service provider, rather than testing the service provider's controls himself or herself.

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Definitions:

Environmental Influences

The various external factors that can impact an individual's behavior, development, and life outcomes, including social, cultural, and physical environments.

Narcissistic Trait

A personality characteristic involving an inflated sense of self-importance, need for admiration, and lack of empathy for others.

Oedipus Complex

The Oedipus complex is a concept in psychoanalytic theory referring to a child's unconscious sexual desire for the opposite-sex parent and jealousy and rivalry toward the same-sex parent.

Reality Principle

A psychoanalytic concept that refers to the ability of the ego to address the demands of the environment in a realistic manner, balancing the id's desires with the external world's constraints.