When a client uses a service center for processing transactions,
A) the auditor can assume that the controls are adequate because it is an independent enterprise.
B) auditing standards require the auditor to test the service center's controls if the service center application involves processing significant financial data.
C) and the user auditor decides to rely on the service auditor's report, the user auditor must make reference to the report of the service auditor in the opinion on the user organization's financial statements.
D) none of the above.

Question

Quizplus · Accepted Answer

Auditing standards necessitate that the auditor assesses and, if deemed necessary, tests the controls of a service center if it processes significant financial data for the client. This is because the service center's controls are integral to the client's financial reporting reliability.

When a Client Uses a Service Center for Processing Transactions