The Difference Between a SAS 70 Type I and Type

question 70

Multiple Choice

The difference between a SAS 70 Type I and Type II report is:

• A) Type II reports extend Type I reports by testing the operating effectiveness of controls.
• B) Type II reports extend Type I reports by testing the design effectiveness of internal control.
• C) Type II reports occur prior to year-end.
• D) Answers C and A.

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Definitions:

Mechanical

Pertaining to or involving machinery or mechanical processes; also refers to being methodical or procedural in nature.

Repetitive Procedure

A method or operation that is carried out repeatedly to test the consistency and reliability of results.

Satisficing

A decision-making strategy that aims for a satisfactory or adequate solution, rather than the optimal one.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.