A Public Client Uses a Service Provider Who Has Received

question 26

Multiple Choice

A public client uses a service provider who has received a favorable SAS 70 Type II report. The auditor can:

• A) limit his/her testing of internal controls.
• B) decide to rely entirely on the SAS 70 report.
• C) refer to the work of the SAS 70 auditor in the audit report.
• D) None of the above.

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Definitions:

Creative Destruction

A concept in economics implying the dismantling of long-standing practices in order to make way for innovation and advancement.

Government Regulation

Government Regulation involves the imposition of rules by government authorities to control or manage market activities, with the aim of protecting public interest.

Creative Destruction

is a concept in economics where innovation radically transforms or destroys existing industries or ways of doing business, leading to new industries and opportunities.

Widespread Costs

Expenses that impact a large sector of the population or numerous aspects of an economy, often relating to public policies or externalities.