When auditing a client whose information is processed by an outside computer service company, it is acceptable for the auditor to rely on the audit report of another independent auditor who has previously tested the internal controls of the computer service centre rather than testing the service centre's controls himself or herself.

Question

Quizplus · Accepted Answer

It is acceptable for the auditor to rely on the audit report of another independent auditor who has previously tested the internal controls of the computer service centre as long as the auditor is satisfied with the other auditor's work and the level of reliance to be placed on that work. This is outlined in the auditing standards. However, the auditor must also obtain sufficient and appropriate evidence to support the conclusion reached in the audit report.

When Auditing a Client Whose Information Is Processed by an Outside