An Audit Client's Decision to Outsource Its Data Processing Function

question 48

Multiple Choice

An audit client's decision to outsource its data processing function to an external service provider,would be of significant interest to the auditor,mostly because:

• A)It would impact on the auditor's assessment of management integrity.
• B)It would impact on the design and effectiveness of the client's internal control system,which would in turn affect the assessed risk of material misstatement.
• C)It would result in a major increase to the audit fee.
• D)It results in a shift in responsibilities away from the auditee's management to that of the service provider.

Comprehend the process and utility of OptQuest in Crystal Ball for optimizing business decisions.

Gain insights into the formulation and solving of integer optimization models.

Learn to define and apply constraints and objective functions in optimization problems.

Acquire the ability to use Excel Solver for revenue maximization and other optimization tasks.

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Definitions:

Price Customers

Refers to consumers whose purchasing decisions are primarily influenced by the price of goods or services.

Operate As Cartel

Operate as cartel means when independent businesses collectively agree to control production, market, and prices of a product to monopolize a market.

Industry's Price

The prevailing price level for goods or services within a specific industry, influenced by factors such as supply and demand.

Output

The total amount of goods or services produced by a firm or country within a specific time period.