Many clients have their data processed at an independent computer service centre (IT outsourcing). The difficulty the independent auditor faces when a computer service centre is used is:
A) in trying to abide by the joint Code of Professional Conduct to maintain the security and confidentiality of the client's data.
B) in determining the adequacy of the service centre's internal controls.
C) finding compatible programs that will analyse the service centre's programs.
D) gaining the permission of the service centre to review its work.

Question

Quizplus · Accepted Answer

The independent auditor may face difficulty in determining the adequacy of the service centre's internal controls. This is because the service centre may have different internal controls or may not disclose them to the auditor. Other options listed may also pose challenges, but determining the adequacy of internal controls is a core concern in auditing IT outsourcing services.

Many Clients Have Their Data Processed at an Independent Computer