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.

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