Auditors can gain sufficient understanding of the internal controls at a service organization by
A) Reviewing the contract with the service organization.
B) Making an inquiry with management of the service organization.
C) Reviewing a report on internal controls provided by the service organization's auditors.
D) Sending a confirmation concerning internal controls to the service organization's auditors.

Question

Quizplus · Accepted Answer

Reviewing a report on internal controls provided by the service organization's auditors (such as a SOC 1 report) gives auditors a comprehensive understanding of the internal controls in place at the service organization.

Auditors Can Gain Sufficient Understanding of the Internal Controls at a Service