Question

In: Accounting

Discuss why is it unacceptable for an auditor to assume that an independent computer service center...

Discuss why is it unacceptable for an auditor to assume that an independent computer service center is providing reliable accounting information to an audit client. Further, how can the auditor test the service center’s internal controls?

Solutions

Expert Solution

Answer:-

  • It is unsatisfactory for an evaluator to accept a free PC benefit focus is giving solid bookkeeping data to a review customer in light of the fact that the reviewer has no firsthand learning with regards to the ampleness of the administration focus' controls.
  • On the off chance that the customer's administration focus application is engaged with handling huge money related information, the examiner must consider the need to get a comprehension of inside control and test the administration focus' controls.
  • The reviewer can test the administration focus' framework by utilization of the test information and different trial of controls.
  • Or on the other hand, he or she may ask for that the administration focus evaluator get a comprehension and test controls of the administration focus, which are condensed in an exceptional report issued by the administration focus inspector for use by the client's examiner.

Related Solutions

The computer center at Rockbottom University has been experiencing computer downtime. Let us assume that the...
The computer center at Rockbottom University has been experiencing computer downtime. Let us assume that the trials of an associated Markov process are defined as one-hour periods and that the probability of the system being in a running state or a down state is based on the state of the system in the previous period. Historical data show the following transition probabilities: To From Running Down Running 0.70 0.30 Down 0.20 0.80 If the system is initially running, what is...
What is the reason and why an independent auditor reports on financial statements and internal control
What is the reason and why an independent auditor reports on financial statements and internal control
Assume that you are an independent auditor who runs your own auditing firm. Salma Company was...
Assume that you are an independent auditor who runs your own auditing firm. Salma Company was your client last year who engage another independent auditor this year because of some issues on auditing fees. You know that Salma Company is having less profit now because of competition with Khalsa Company. Because of this reason, Salma Company wants to buy Khalsa Company. Just two months ago, Hajir Company became your new client. Hajir Company’s previous auditor suddenly had a heart attack,...
(A) Explain what is the job of an independent auditor. (B) Explain why companies should file...
(A) Explain what is the job of an independent auditor. (B) Explain why companies should file their financial statements accurately and on time.
The director of the Computer Center needs to schedule the staffing of the center. It is...
The director of the Computer Center needs to schedule the staffing of the center. It is open from 8am until midnight. The director has monitored the usage of the center at various times of the day and determined that the following number of computer consultants are required: Time of Day Minimum number of consultants required to be on duty 8am-noon 12 Noon-4pm 18 4pm-8pm 24 8pm-midnight 12 The two types of computer consultants can be hired: full-time and part-time. The...
Consider a computer technical support center where personnel take calls and provide service. The time between...
Consider a computer technical support center where personnel take calls and provide service. The time between calls ranges from 1 to 4 minutes. There are two technical support people – Ayşe and Burak. Ayşe is more experienced and can provide service faster than Burak. System works as follows: Ayşe takes the call if both technical support are idle. If Ayşe is busy and Burak is idle, Burak takes the call. If both Ayşe and Burak are busy, call waits in...
The Report of the Independent Auditor is the opinion of the CPA firm that examined the...
The Report of the Independent Auditor is the opinion of the CPA firm that examined the financial statements of a company and states which of the following? The financial statements are correct as reported The financial statements are free from fraud The financial statements are presented fairly in accordance with GAAP. The financial statements are fairly presented
Many APN's become an independent contractor for health groups that provide service for patients. Discuss the...
Many APN's become an independent contractor for health groups that provide service for patients. Discuss the elements that are important to you when seeking a place of employment. what is negotiable and what is non-negotiable? Discuss two benefits as formal employment as an APN
Discuss if Uber drivers should be independent contractors or dependent employees. Why yes, why no.
Discuss if Uber drivers should be independent contractors or dependent employees. Why yes, why no.
1) Find the appropriate measure of center. Discuss why the chosen measure is most appropriate. Why...
1) Find the appropriate measure of center. Discuss why the chosen measure is most appropriate. Why did you decide against other possible measures of center? 2) Find the appropriate measure of variation. The measure of variation chosen here should match the measure of center chosen in Part 1. 3) Find the graph(s) needed to appropriately describe the data. These may be done by hand and inserted into the Word document. 4) Define a random variable (X) so that your chosen...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT