AUD 3 Internal Control 15 - 2 Service Organizations Flashcards

Question 1

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Question 2

Q

Service Organizations

Tra_________s processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Question 3

Q

Service Organizations

Transactions processed by ser____ organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Question 4

Q

Service Organizations

Transactions processed by service organization
(pay____ processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Question 5

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in pl___ at client.
TofC in pl___ at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Question 6

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at ser____ organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Question 7

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another au_____.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Question 8

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get re____ from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Question 9

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (ser____ auditor).
A service auditor should inquire of management about subsequent events.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Question 10

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A ser____ auditor should inquire of management about subsequent events.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Question 11

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of ma_________ about subsequent events.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Question 12

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent e____s.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Question 13

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.

TofC in place at service organization by another auditor.

 o Report on whether controls have been implemented and controls operating effectiveness.

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

• A service auditor should inquire of management about subsequent events.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.

TofC in place at service organization by another auditor.

 o Report on whether controls have been implemented and controls operating effectiveness.

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

• A service auditor should inquire of management about subsequent events.

Question 14

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at service organization by an______ auditor.

   o Report on whether controls have been implemented and controls operating effectiveness.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at service organization by another auditor.

   o Report on whether controls have been implemented and controls operating effectiveness.

Question 15

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at service organization by another auditor.

   o Re\_\_\_\_ on whether controls have been implemented and controls operating effectiveness.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at service organization by another auditor.

   o Report on whether controls have been implemented and controls operating effectiveness.

Question 16

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at service organization by another auditor.

   o Report on whether con\_\_\_\_s have been implemented and controls operating effectiveness.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at service organization by another auditor.

   o Report on whether controls have been implemented and controls operating effectiveness.

Question 17

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at service organization by another auditor.

   o Report on whether controls have been impl\_\_\_\_\_\_\_ed and controls operating effectiveness.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at service organization by another auditor.

   o Report on whether controls have been implemented and controls operating effectiveness.

Question 18

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at service organization by another auditor.

   o Report on whether controls have been implemented and con\_\_\_\_s operating effectiveness.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at service organization by another auditor.

   o Report on whether controls have been implemented and controls operating effectiveness.

Question 19

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at service organization by another auditor.

   o Report on whether controls have been implemented and controls op\_\_\_\_ing effectiveness.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at service organization by another auditor.

   o Report on whether controls have been implemented and controls operating effectiveness.

Question 20

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at service organization by another auditor.

   o Report on whether controls have been implemented and controls operating ef\_\_\_\_\_\_\_\_ess.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• TofC in place at service organization by another auditor.

   o Report on whether controls have been implemented and controls operating effectiveness.

Question 21

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get re____ from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

Question 22

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the ot___ Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

Question 23

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Ex\_\_\_\_\_\_es an opinion on management’s assertions regarding:

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:

Question 24

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an op\_\_\_\_\_ on management’s assertions regarding

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:

Question 25

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s as\_\_\_\_\_\_\_\_s regarding:
          ▪ Management’s description of the service organization’s system 
          ▪ The controls related to the control objectives stated in management’s description

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system 
          ▪ The controls related to the control objectives stated in management’s description

Question 26

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s de\_\_\_\_\_\_\_\_ of the service organization’s system

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system

Question 27

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the ser\_\_\_\_ organization’s system fairly presents the system

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system

Question 28

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system f\_\_\_\_y presents the system that was designed and implemented during the period.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.

Question 29

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly pr\_\_\_\_\_\_\_s the system that was designed and implemented during the period.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.

Question 30

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was de\_\_\_\_ed and implemented during the period.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.

Question 31

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and imp\_\_\_\_\_\_ed during the period.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.

Question 32

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The co\_\_\_\_\_s related to the control objectives

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives

Question 33

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control obj\_\_\_\_\_\_es stated in management’s description

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description

Question 34

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in ma\_\_\_\_\_\_\_\_’s description

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description

Question 35

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were s\_\_\_ably designed

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed a

Question 36

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably de\_\_\_\_ed and operated effectively during the period.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

Question 37

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and op\_\_\_\_\_d effectively during the period.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

Question 38

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated eff\_\_\_\_\_ly during the period.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

Question 39

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively d\_\_\_ng the period.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

Question 40

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The re\_\_\_\_also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

Question 41

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:

   o The report also in\_\_\_\_\_s a description of the tests of controls

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:

   o The report also includes a description of the tests of controls

Question 42

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:

   o The report also includes a des\_\_\_\_\_\_\_ of the tests of controls

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:

   o The report also includes a description of the tests of controls

Question 43

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o The report also includes a description of the t\_\_\_s of controls

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o The report also includes a description of the tests of controls

Question 44

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o The report also includes a description of the tests of co\_\_\_\_\_s and the results of those tests that were performed by the service auditor.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

Question 45

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o The report also includes a description of the tests of controls and the re\_\_\_\_s of those tests that were performed by the service auditor.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

Question 46

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o The report also includes a description of the tests of controls and the results of those tests that were per\_\_\_\_ed by the service auditor.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

Question 47

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the ser\_\_\_\_ auditor.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

Question 48

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:

   o The re\_\_\_\_ also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.

   o ID purpose of engagement.

   o ID parties Intended use.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.

   o ID purpose of engagement.

   o ID parties Intended use.

Question 49

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service au\_\_\_\_\_.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.

   o ID purpose of engagement.

   o ID parties Intended use.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.

   o ID purpose of engagement.

   o ID parties Intended use.

Question 50

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Desc\_\_\_\_\_\_\_ of the Scope and nature of procedures performed.

   o ID party specifying objectives.

   o ID purpose of engagement.

   o ID parties Intended use.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.

   o ID purpose of engagement.

   o ID parties Intended use.

Question 51

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Sc\_\_\_ and nature of procedures performed.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures performed.

Question 52

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and na\_\_\_\_ of procedures performed.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures performed.

Question 53

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of proc\_\_\_\_\_s performed.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures performed.

Question 54

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures pe\_\_\_\_\_ed.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures performed.

Question 55

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures performed.

   o ID party specifying obj\_\_\_\_\_\_s.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.

Question 56

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.

   o ID pur\_\_\_\_ of engagement.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.

   o ID purpose of engagement.

Question 57

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.

   o ID purpose of eng\_\_\_\_\_\_.

   o ID parties Intended use.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.

   o ID purpose of engagement.

   o ID parties Intended use.

Question 58

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.

   o ID purpose of engagement.

   o ID parties Intended u\_\_.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.

   o ID purpose of engagement.

   o ID parties Intended use.

Question 59

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.

   o ID purpose of engagement.

   o ID parties Int\_\_\_ed use.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.

   o ID purpose of engagement.

   o ID parties Intended use.

Question 60

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (ser____ auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

Question 61

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Exp\_\_\_\_es an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a des\_\_\_\_\_\_ of the tests of controls and the results of those tests that were performed by the service auditor.

   o Desc\_\_\_\_\_ of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

Question 62

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opi\_\_\_\_ on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the t\_\_\_s of controls and the results of those tests that were performed by the service auditor.

   o Description of the Sc\_\_\_ and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

Question 63

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s as\_\_\_\_\_\_\_\_s regarding:
          ▪ Management’s des\_\_\_\_\_\_\_ of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The co\_\_\_\_\_s related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

Question 64

Q

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the ser\_\_\_\_ organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control obj\_\_\_\_\_s stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

Answer

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

Answer 65

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Answer 66

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Answer 67

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Answer 68

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Answer 69

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.
TofC in place at service organization by another auditor.
Get report from the other Auditor (service auditor).
A service auditor should inquire of management about subsequent events.

Answer 70

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.

TofC in place at service organization by another auditor.

 o Report on whether controls have been implemented and controls operating effectiveness.

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

• A service auditor should inquire of management about subsequent events.

Answer 71

A

Service Organizations

Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)

TofC in place at client.

TofC in place at service organization by another auditor.

 o Report on whether controls have been implemented and controls operating effectiveness.

• Get report from the other Auditor (service auditor).

   o Expresses an opinion on management’s assertions regarding:
          ▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
          ▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.

   o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.

   o Description of the Scope and nature of procedures performed.

   o ID party specifying objectives.
   o ID purpose of engagement.
   o ID parties Intended use.

• A service auditor should inquire of management about subsequent events.

Answer 72

A

Service Organizations

As part of obtaining an understanding of the internal controls of a client using a service organization,

Answer 73

A

Service Organizations

As part of obtaining an understanding of the internal controls of a client using a service organization,

Answer 74

A

Service Organizations

As part of obtaining an understanding of the internal controls of a client using a service organization,

the auditor should obtain an understanding as to how the client uses the service organization.

Answer 75

A

Service Organizations

As part of obtaining an understanding of the internal controls of a client using a service organization,

the auditor should obtain an understanding as to how the client uses the service organization.

Answer 76

A

Service Organizations

As part of obtaining an understanding of the internal controls of a client using a service organization,

the auditor should obtain an understanding as to how the client uses the service organization.

Answer 77

A

Service Organizations

As part of obtaining an understanding of the internal controls of a client using a service organization,

the auditor should obtain an understanding as to how the client uses the service organization.

The understanding will include:

The nature of the services provided;
The significance of the services to the user entity;
The effect on the user entity’s internal control;
The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities; and
Contractual terms for activities performed by the service organization.

Answer 78

A

Service Organizations

As part of obtaining an understanding of the internal controls of a client using a service organization, the auditor should obtain an understanding as to how the client uses the service organization.

The understanding will include:

• The nature of the services provided;

Answer 79

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

• The nature of the services provided;

Answer 80

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

• The nature of the services provided;

Answer 81

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature of the services provided;
The significance of the services to the user entity;

Answer 82

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature of the services provided;
The significance of the services to the user entity;

Answer 83

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature of the services provided;
The significance of the services to the user entity;

Answer 84

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The significance of the services to the user entity;
The effect on the user entity’s internal control;

Answer 85

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The significance of the services to the user entity;
The effect on the user entity’s internal control;

Answer 86

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The significance of the services to the user entity;
The effect on the user entity’s internal control;

Answer 87

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The significance of the services to the user entity;
The effect on the user entity’s internal control;

Answer 88

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The effect on the user entity’s internal control;
The nature and materiality of transactions that are processed by the service organization;

Answer 89

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The effect on the user entity’s internal control;
The nature and materiality of transactions that are processed by the service organization;

Answer 90

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The effect on the user entity’s internal control;
The nature and materiality of transactions that are processed by the service organization;

Answer 91

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The effect on the user entity’s internal control;
The nature and materiality of transactions that are processed by the service organization;

Answer 92

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;

Answer 93

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;

Answer 94

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;

Answer 95

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;

Answer 96

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;

Answer 97

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities;

Answer 98

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities;

Answer 99

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities;

Answer 100

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities;

Answer 101

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature of the relationship between the entities;
Contractual terms for activities performed by the service organization.

Answer 102

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature of the relationship between the entities;
Contractual terms for activities performed by the service organization.

Answer 103

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature of the relationship between the entities;
Contractual terms for activities performed by the service organization.

Answer 104

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature of the relationship between the entities;
Contractual terms for activities performed by the service organization.

Answer 105

A

Service Organizations

The understanding will include:

The nature of the services provided;
The significance of the services to the user entity;
The effect on the user entity’s internal control;

Answer 106

A

Service Organizations

The understanding will include:

The nature of the services provided;
The significance of the services to the user entity;
The effect on the user entity’s internal control;

Answer 107

A

Service Organizations

The understanding will include:

The nature of the services provided;
The significance of the services to the user entity;
The effect on the user entity’s internal control;

Answer 108

A

Service Organizations

The understanding will include:

The nature of the services provided;
The significance of the services to the user entity;
The effect on the user entity’s internal control;

Answer 109

A

Service Organizations

The understanding will include:

The nature of the services provided;
The significance of the services to the user entity;
The effect on the user entity’s internal control;
The nature and materiality of transactions that are processed by the service organization;

Answer 110

A

Service Organizations

The understanding will include:

The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities; and
Contractual terms for activities performed by the service organization.

Answer 111

A

Service Organizations

The understanding will include:

The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities; and
Contractual terms for activities performed by the service organization.

Answer 112

A

Service Organizations

As part of obtaining an understanding of the internal controls of a client using a service organization, the auditor should obtain an understanding as to how the client uses the service organization.

The understanding will include:

The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities; and
Contractual terms for activities performed by the service organization.

Answer 113

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature of the services provided;
The significance of the services to the user entity;
The effect on the user entity’s internal control;
The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities; and
Contractual terms for activities performed by the service organization.

Answer 114

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature of the services provided;
The significance of the services to the user entity;
The effect on the user entity’s internal control;
The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities; and
Contractual terms for activities performed by the service organization.

Answer 115

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature of the services provided;
The significance of the services to the user entity;
The effect on the user entity’s internal control;
The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities; and
Contractual terms for activities performed by the service organization.

Answer 116

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature of the services provided;
The significance of the services to the user entity;
The effect on the user entity’s internal control;
The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities; and
Contractual terms for activities performed by the service organization.

Answer 117

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature of the services provided;
The significance of the services to the user entity;
The effect on the user entity’s internal control;
The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities; and
Contractual terms for activities performed by the service organization.

Answer 118

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature of the services provided;
The significance of the services to the user entity;
The effect on the user entity’s internal control;
The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities; and
Contractual terms for activities performed by the service organization.

Answer 119

A

Service Organizations

The understanding of the internal controls of a client using a service organization will include:

The nature of the services provided;
The significance of the services to the user entity;
The effect on the user entity’s internal control;
The nature and materiality of transactions that are processed by the service organization;
Interaction between the activities of the user entity and of the service organization;
The nature of the relationship between the entities; and
Contractual terms for activities performed by the service organization.

Answer 120

A

Service Organizations

The auditor will also evaluate the internal controls established by the user entity

Answer 121

A

Service Organizations

The auditor will also evaluate the internal controls established by the user entity

Answer 122

A

Service Organizations

The auditor will also evaluate the internal controls established by the user entity

Answer 123

A

Service Organizations

The auditor will also evaluate the internal controls established by the user entity

Answer 124

A

Service Organizations

The auditor will also evaluate the internal controls established by the user entity

to administer the relationship with the service organization.

Answer 125

A

Service Organizations

The auditor will also evaluate the internal controls established by the user entity

to administer the relationship with the service organization.

Answer 126

A

Service Organizations

The auditor will also evaluate the internal controls established by the user entity

to administer the relationship with the service organization.

Answer 127

A

Service Organizations

The auditor will also evaluate the internal controls established by the user entity

to administer the relationship with the service organization.

Answer 128

A

Service Organizations

The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.

The entity may, for example, have controls to verify the accuracy of the output of the service organization.

Answer 129

A

Service Organizations

The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.

The entity may, for example, have controls to verify the accuracy of the output of the service organization.

Answer 130

A

Service Organizations

The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.

The entity may, for example, have controls to verify the accuracy of the output of the service organization.

Answer 131

A

Service Organizations

The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.

The entity may, for example, have controls to verify the accuracy of the output of the service organization.

Answer 132

A

Service Organizations

The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.

The entity may, for example, have controls to verify the accuracy of the output of the service organization.

The auditor will use the understanding of the nature and significance of the services provided by the service organization, along with the entity’s related controls, to identify and assess risks of material misstatement that may result.

Answer 133

A

Service Organizations

The auditor will use the understanding of the nature

Answer 134

A

Service Organizations

The auditor will use the understanding of the nature

Answer 135

A

Service Organizations

The auditor will use the understanding of the

nature and
significance of the services

Answer 136

A

Service Organizations

The auditor will use the understanding of the

nature and
significance of the services provided by the service organization,

Answer 137

A

Service Organizations

The auditor will use the understanding of the

nature and
significance of the services provided by the service organization,
along with the entity’s related controls,

Answer 138

A

Service Organizations

The auditor will use the understanding of the

nature and
significance of the services provided by the service organization,
along with the entity’s related controls,

to identify and assess risks of material misstatement that may result.

Answer 139

A

Service Organizations

The auditor will use the understanding of the

nature and
significance of the services provided by the service organization,
along with the entity’s related controls,

to identify and assess risks of material misstatement that may result.

Answer 140

A

Service Organizations

The auditor will use the understanding of the

nature and
significance of the services provided by the service organization,
along with the entity’s related controls,

to identify and assess risks of material misstatement that may result.

Answer 141

A

Service Organizations

The auditor will use the understanding of the nature
and significance of the services provided by the service organization,
along with the entity’s related controls,

to identify and assess risks of material misstatement that may result.

Answer 142

A

Service Organizations

The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.

The entity may, for example, have controls to verify the accuracy of the output of the service organization.

The auditor will use the understanding of the nature and significance of the services provided by the service organization, along with the entity’s related controls, to identify and assess risks of material misstatement that may result.

Answer 143

A

Service Organizations

In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.

Answer 144

A

Service Organizations

In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.

Answer 145

A

Service Organizations

In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.

Answer 146

A

Service Organizations

In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.

Answer 147

A

Service Organizations

In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.

Answer 148

A

Service Organizations

In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.

Answer 149

A

Service Organizations

In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.

Answer 150

A

Service Organizations

In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.

Answer 151

A

Service Organizations

In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.

Answer 152

A

Service Organizations

In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.

In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available;
Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization; or
Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 153

A

Service Organizations

In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.

In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:

• Obtaining and reading a type 1 or type 2 report, if available

Answer 154

A

Service Organizations

In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.

In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:

• Obtaining and reading a type 1 or type 2 report, if available

Answer 155

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

• Obtaining and reading a type 1 or type 2 report, if available

Answer 156

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

• Obtaining and reading a type 1 or type 2 report, if available

Answer 157

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

• Obtaining and reading a type 1 or type 2 report, if available

Answer 158

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available
Obtain information from contact with the service organization, through the user entity;

Answer 159

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available
Obtain information from contact with the service organization, through the user entity;

Answer 160

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available
Obtain information from contact with the service organization, through the user entity;

Answer 161

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available
Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization;

Answer 162

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization;

Answer 163

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization;

Answer 164

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization;

Answer 165

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

Apply procedures directly to the operations of the service organization; or
Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 166

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

Apply procedures directly to the operations of the service organization; or
Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 167

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

• Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 168

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

• Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 169

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

• Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 170

A

Service Organizations

In such cases that the auditor will not able to obtain a sufficient understanding,

the auditor will obtain a sufficient understanding by performing one or more of the following:

• Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 171

A

Service Organizations

In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.

In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available;
Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization; or
Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 172

A

Service Organizations

In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.

In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available;
Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization; or
Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 173

A

Service Organizations

In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.

In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available;
Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization; or
Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 174

A

Service Organizations

In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.

In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available;
Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization; or
Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 175

A

Service Organizations

In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.

In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available;
Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization; or
Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 176

A

Service Organizations

In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.

In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available;
Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization; or
Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 177

A

Service Organizations

In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.

In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available;
Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization; or
Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 178

A

Service Organizations

In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.

In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available;
Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization; or
Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 179

A

Service Organizations

In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.

In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available;
Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization; or
Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 180

A

Service Organizations

In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.

In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:

Obtaining and reading a type 1 or type 2 report, if available;
Obtain information from contact with the service organization, through the user entity;
Apply procedures directly to the operations of the service organization; or
Use the work of another auditor applying procedures designed to obtain the necessary information.

Answer 181

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

A type 1 report
A type 2 report

Answer 182

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

A type 1 report
A type 2 report

Answer 183

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

Answer 184

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls

Answer 185

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls

Answer 186

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls

Answer 187

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

Answer 188

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls

and the suitability of the design of the controls.

Answer 189

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls

and the suitability of the design of the controls.

Answer 190

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives; and

o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions.

Answer 191

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

Answer 192

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

Answer 193

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

Answer 194

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

Answer 195

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

Answer 196

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

Answer 197

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

Answer 198

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

Answer 199

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

Answer 200

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system

Answer 201

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system

Answer 202

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date

Answer 203

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date

Answer 204

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date

Answer 205

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date

Answer 206

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
 ▪ Controls related to objectives stated in management’s description

Answer 207

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
 ▪ Controls related to objectives stated in management’s description

Answer 208

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives;

Answer 209

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives;

Answer 210

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives;

Answer 211

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives;

Answer 212

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives;

Answer 213

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives;

Answer 214

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives; and

o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions.

Answer 215

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

o A report from the auditor of the service organization, referred to as the service auditor,

Answer 216

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

o A report from the auditor of the service organization, referred to as the service auditor,

expressing an opinion in relation to management’s written assertions.

Answer 217

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

o A report from the auditor of the service organization, referred to as the service auditor,

expressing an opinion in relation to management’s written assertions.

Answer 218

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

o A report from the auditor of the service organization, referred to as the service auditor,

expressing an opinion in relation to management’s written assertions.

Answer 219

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

o A report from the auditor of the service organization, referred to as the service auditor,

expressing an opinion in relation to management’s written assertions.

Answer 220

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

o A report from the auditor of the service organization, referred to as the service auditor,

expressing an opinion in relation to management’s written assertions.

Answer 221

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives; and

o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions.

Answer 222

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives; and

o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions.

Answer 223

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives; and

o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions.

Answer 224

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

Answer 225

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls

Answer 226

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls

Answer 227

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls

Answer 228

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls

Answer 229

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

Answer 230

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

Answer 231

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

Answer 232

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

Answer 233

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

Answer 234

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.

Answer 235

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

Answer 236

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

Answer 237

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

Answer 238

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects,

Answer 239

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects,

Answer 240

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects,

Answer 241

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

Answer 242

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

Answer 243

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

Answer 244

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed

Answer 245

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed

Answer 246

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed

Answer 247

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,

Answer 248

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,

Answer 249

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,

Answer 250

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,

Answer 251

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,

 ▪ Controls related to objectives stated in management’s description

Answer 252

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ Controls related to objectives stated in management’s description were suitably designed

Answer 253

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ Controls related to objectives stated in management’s description were suitably designed

Answer 254

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ Controls related to objectives stated in management’s description were suitably designed

Answer 255

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives,

Answer 256

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives,

Answer 257

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives,

Answer 258

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives,

Answer 259

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and

 ▪ The controls related to the specified objectives were operating effectively

Answer 260

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The controls related to the specified objectives were operating effectively t

Answer 261

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The controls related to the specified objectives were operating effectively

Answer 262

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The controls related to the specified objectives were operating effectively throughout the specified period;

Answer 263

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The controls related to the specified objectives were operating effectively throughout the specified period;

Answer 264

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The controls related to the specified objectives were operating effectively throughout the specified period;

Answer 265

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The controls related to the specified objectives were operating effectively throughout the specified period;

Answer 266

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,

 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and

 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

Answer 267

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,

 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and

 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

Answer 268

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,

 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and

 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

Answer 269

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,

 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and

 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

Answer 270

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,

 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and

 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

Answer 271

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,

 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and

 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

Answer 272

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,

 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and

 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

Answer 273

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,

 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and

 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

Answer 274

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,

 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and

 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

Answer 275

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
 ▪ The controls related to the specified objectives were operating effectively throughout the specified period;

Answer 276

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
 ▪ The controls related to the specified objectives were operating effectively throughout the specified period;

Answer 277

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions and describing the tests of controls performed and the results of those tests.

Answer 278

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o A report from the auditor of the service organization, referred to as the service auditor,

Answer 279

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o A report from the auditor of the service organization, referred to as the service auditor,

Answer 280

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o A report from the auditor of the service organization, referred to as the service auditor,

Answer 281

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o A report from the auditor of the service organization, referred to as the service auditor,

expressing an opinion in relation to management’s written assertions

Answer 282

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o A report from the auditor of the service organization, referred to as the service auditor,

expressing an opinion in relation to management’s written assertions

Answer 283

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o A report from the auditor of the service organization, referred to as the service auditor,

expressing an opinion in relation to management’s written assertions

Answer 284

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o A report from the auditor of the service organization, referred to as the service auditor,

expressing an opinion in relation to management’s written assertions

Answer 285

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o A report from the auditor of the service organization, referred to as the service auditor,

expressing an opinion in relation to management’s written assertions

and describing the tests of controls performed

Answer 286

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o A report from the auditor of the service organization, referred to as the service auditor,

expressing an opinion in relation to management’s written assertions

and describing the tests of controls performed

Answer 287

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o A report from the auditor of the service organization, referred to as the service auditor,

expressing an opinion in relation to management’s written assertions

and describing the tests of controls performed and the results of those tests.

Answer 288

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o A report from the auditor of the service organization, referred to as the service auditor,

expressing an opinion in relation to management’s written assertions

and describing the tests of controls performed and the results of those tests.

Answer 289

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o A report from the auditor of the service organization, referred to as the service auditor,

expressing an opinion in relation to management’s written assertions

and describing the tests of controls performed and the results of those tests.

Answer 290

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions and describing the tests of controls performed and the results of those tests.

Answer 291

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions and describing the tests of controls performed and the results of those tests.

Answer 292

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.

Answer 293

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.

Answer 294

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.

Answer 295

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.

Answer 296

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.

Answer 297

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.

Answer 298

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.

Answer 299

A

Service Organizations

There are two reports that the auditor of a service organization may issue:

• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.

It consists of:

o Management’s description of the system;

o Management’s written assertion that, in all material respects, based on appropriate criteria,

 ▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
 ▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
 ▪ The controls related to the specified objectives were operating effectively throughout the specified period; and

o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.

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AUD 3 Internal Control 15 - 2 Service Organizations Flashcards

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