Many clients have outsourced their IT functions.The difficulty the independent auditor faces when a computer service center is used is to:
A)gain the permission of the service center to review their work.
B)find compatible programs that will analyze the service center's programs.
C)determine the adequacy of the service center's internal controls.
D)try to abide by the Code of Professional Conduct to maintain the security and confidentiality of client's data.

Question

Quizplus · Accepted Answer

When IT functions are outsourced, it becomes difficult for the independent auditor to determine the adequacy of the service center's internal controls. It is the auditor's responsibility to evaluate the service center's internal controls to ensure that they are effective in mitigating the risk of material misstatements. The other options may also be challenges faced by the auditor, but determining the adequacy of internal controls is a more critical task.

Many Clients Have Outsourced Their IT Functions