Auditors can gain sufficient understanding of the internal controls at a service organization by
A)reviewing the contract with the service organization.
B)inquiry with management of the service organization.
C)reviewing a report on internal controls provided by the service organization's auditors.
D)sending a confirmation concerning internal controls to the service organization's auditors.

Question

Quizplus · Accepted Answer

Reviewing a report on internal controls provided by the service organization's auditors (such as a SOC 1 report) gives auditors a comprehensive understanding of the internal controls in place at the service organization.

Auditors Can Gain Sufficient Understanding of the Internal Controls at a Service