When the auditor is obtaining an understanding of the independent computer service center's internal controls, the auditor should
A) use the same criteria used to evaluate the client's internal controls.
B) use different criteria because the service center resides outside the company.
C) use the same criteria used to evaluate the client's internal controls but omit tests of transactions.
D) use different criteria for the service center by including substantive tests of balances.

Question

Quizplus · Accepted Answer

The auditor should use the same criteria used to evaluate the client's internal controls when obtaining an understanding of the independent computer service center's internal controls. This is because the service center is providing services to the client and its internal controls will impact the accuracy and completeness of the client's financial information. However, the auditor may omit tests of transactions for the service center as they are not directly related to the client.

When the Auditor Is Obtaining an Understanding of the Independent