When a Client Uses a Service Organization to Process Certain

question 69

Multiple Choice

When a client uses a service organization to process certain transactions (e.g.,its employee benefit plan) ,the auditor is least likely to obtain an understanding relating to these transactions by

• A)Contacting the service organization to obtain specific information.
• B)Visiting the service organization and performing procedures.
• C)Sending a confirmation request to the service organization
• D)Obtaining and reading a type 1 or type 2 report from the service organization.

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Definitions:

Inter University Consortium

An Inter University Consortium is a collaborative partnership between universities to pool resources, expertise, and facilities for mutual benefit.

Case studies

In-depth investigations of a single person, group, event, or community, often used for detailed examination.

Rare events

Incidences that occur infrequently within a given domain or context.

Unusual events

Incidents or occurrences that deviate significantly from what is considered normal or expected, often attracting attention or requiring special handling.