Which of the Following Is Not True

question 122

Multiple Choice

Which of the following is not true?

• A)Management may outsource their organizations' IT functions,but they cannot outsource their management responsibilities for internal control.
• B)section 404 requires the explicit testing of outsourced controls.
• C)The SAS 70 report,which is prepared by the outsourcer's auditor,attests to the adequacy of the vendor's internal controls.
• D)Auditors issue two types of SAS 70 reports: SAS 70 Type I report and SAS 70 Type II report.

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Definitions:

Smoothing Constant

A factor used in exponential smoothing methods for forecasting, affecting the weight given to historical data.

Forecast

The process of making predictions about future events or trends based on past and current data analyses.

Smoothing Constant

A parameter used in exponential smoothing methods for time series data to control the degree of smoothing applied to the data.