Many clients have outsourced the IT functions. The difficulty the independent auditor faces when a computer service center is used is to:
A) gain the permission of the service center to review their work.
B) find compatible programs that will analyze the service center's programs.
C) determine the adequacy of the service center's internal controls.
D) try to abide by the Code of Professional Conduct to maintain the security and confidentiality of client's data.

Question

Quizplus · Accepted Answer

When IT functions are outsourced, the service center takes over the responsibility of maintaining the internal controls of the system. Therefore, it becomes necessary for the independent auditor to determine the adequacy of the controls implemented by the service center in order to obtain assurance on the reliability of the financial statements. Options A, B, and D may also pose challenges, but they are not the primary difficulty faced by the auditor in this scenario.

Many Clients Have Outsourced the IT Functions