Which of the Following Is Not True

question 55

Multiple Choice

Which of the following is not true?

• A) Management may outsource their organizations' IT functions, but they cannot outsource their management responsibilities for internal control.
• B) Section 404 requires the explicit testing of outsourced controls.
• C) The SAS 70 report, which is prepared by the outsourcer's auditor, attests to the adequacy of the vendor's internal controls.
• D) Auditors issue two types of SAS 70 reports: SAS 70 Type I report and SAS 70 Type II report.

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Definitions:

Limited Funds

A situation where there is a scarcity of financial resources available for use.

Business Experience

Acquired understanding and skills gained from participating in commercial activities or running a business.

Nonborrowed Source

A term referring to funds or resources that are not obtained through borrowing.

Franchise Fee

The one-time payment made to become a franchisee.