When an Audit Client Uses a Service Organization,the Auditor Is

question 103

Multiple Choice

When an audit client uses a service organization,the auditor is required to

• A)have appropriate competence and capabilities to review the service organization
• B)obtain an understanding of the nature and significance of the services provided by the service organization and the design and operation of the relevant controls performed by the service organization
• C)comply with relevant independence and fraud detection requirements
• D)maintain professional appearance and exercise professional judgment

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Definitions:

Commitment Contract

A formal agreement a person makes with themselves or others to stick to a set of goals or behaviors.

Community College

A type of educational institution that offers two-year degrees (associates degrees), certifications, and sometimes, preparation for transfer to a four-year college or university.

Alcohol

A chemical compound often used in beverages that can alter mood and behavior, with the potential for dependency and health issues.

Negative Habit

A repetitive behavior that is detrimental to one's physical or mental health, often challenging to break due to its ingrained nature.