When a client company is using IT outsourcing, and that service center has its own auditors who report on internal control, the third-party report from the independent auditors) cannot be used as audit evidence without the auditor performing an adequate amount of compliance testing.

Question

Quizplus · Accepted Answer

The third-party report from independent auditors can be used as audit evidence, but the auditor must assess its relevance and reliability, and may need to perform additional procedures if necessary.

When a Client Company Is Using IT Outsourcing, and That