A public client uses a service provider who has received a favorable SAS 70 Type II report. The auditor can:
A) limit his/her testing of internal controls.
B) decide to rely entirely on the SAS 70 report.
C) refer to the work of the SAS 70 auditor in the audit report.
D) None of the above.

Question

Quizplus · Accepted Answer

A favorable SAS 70 Type II report indicates that the service provider has been audited and found to have adequate controls in place. This allows the auditor of the public client to limit his/her testing of internal controls related to the services provided by the service provider, as the SAS 70 Type II report provides assurance about the effectiveness of those controls over a specified period.

A Public Client Uses a Service Provider Who Has Received