Which of the Following Is True Regarding Type II SAS

question 72

Multiple Choice

Which of the following is true regarding Type II SAS 70 reports?

• A) They include the company's opinion of the internal control system of a third-party service provider.
• B) They include the results of testing of the third-party service provider's internal control system.
• C) The report must cover the third-party service provider's audit period.
• D) All of the above are true statements regarding the Type II SAS 70 report.

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Definitions:

Overconfidence

A cognitive bias where an individual's subjective confidence in their judgments is reliably higher than their objective accuracy, leading to potential errors in decision making.

Hindsight Bias

The predisposition to think, once an event has taken place, that one could have predicted or anticipated its outcome.

Intuition

An effortless, immediate, automatic feeling or thought, as contrasted with explicit, conscious reasoning.

Overconfidence

Overconfidence refers to the phenomenon where an individual's subjective confidence in their judgements is reliably greater than their objective accuracy, especially when confidence is relatively high.