When auditing a client whose information is processed by an outside service provider, it is not acceptable for the auditor to rely on the audit report of another independent auditor who has previously tested the internal controls of the service provider, rather than testing the service provider's controls himself or herself.

Question

Quizplus · Accepted Answer

Auditors can rely on the audit report of another independent auditor who has tested the service provider's controls, as long as the report is relevant, reliable, and meets the necessary standards.

When Auditing a Client Whose Information Is Processed by an Outside