When a Company Uses a Service Organization to Prepare Its

question 48

Multiple Choice

When a company uses a service organization to prepare its payroll,the company's auditors

• A)have no obligation concerning the internal controls at the service organization.
• B)need to understand the internal controls over the transaction regardless of the location of the control.
• C)must audit the internal controls at the service organization.
• D)should include the audit report of the service company's auditors with their auditors' report.

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Definitions:

Observational Learning

A learning process whereby individuals acquire new behaviors or knowledge by observing and imitating others.

Higher-Order Conditioning

A procedure in which the conditioned stimulus in one conditioning experience is paired with a new neutral stimulus, creating a second (often weaker) conditioned stimulus. For example, an animal that has learned that a tone predicts food might then learn that a light predicts the tone and begin responding to the light alone. (Also called second-order conditioning.)

Mixed Emotional Reactions

Experiencing multiple emotions at the same time, which might be conflicting or complementary.

Psychotherapist

A trained professional who treats mental health issues and emotional difficulties through psychological techniques and therapies.