Which of the Following Is Correct Relating to Service Organization

question 12

Multiple Choice

Which of the following is correct relating to service organization control (SOC) reports referred to as "SOC 2" reports?

• A)They are primarily to assist financial statement auditors when processing services have been outsourced to a service provider.
• B)They are generally available to anyone.
• C)They relate most directly to internal control over financial reporting.
• D)They are meant for management of service organizations,user entities,and certain other specified entities.

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Definitions:

Purchases Journals

Accounting journals used to record all purchases of goods and services on credit for the purpose of resale.

Cash Receipts Journal

A dedicated accounting journal used to record all cash inflows or receipts, including cash sales and accounts receivable collections.

Other Accounts Column

A column in ledger books or accounting journals used to record transactions that do not fit into the standard categories provided, offering flexibility for miscellaneous entries.

Subsidiary Ledgers

Detailed ledgers that contain information about specific accounts, which are then summarized and included in a company's general ledger.