When an audit client uses a service organization,the auditor is required to
A)have appropriate competence and capabilities to review the service organization
B)obtain an understanding of the nature and significance of the services provided by the service organization and the design and operation of the relevant controls performed by the service organization
C)comply with relevant independence and fraud detection requirements
D)maintain professional appearance and exercise professional judgment

Question

Quizplus · Accepted Answer

When an audit client uses a service organization, the auditor is required to obtain an understanding of the nature and significance of the services provided by the service organization and the design and operation of the relevant controls performed by the service organization. This helps the auditor to assess the risks associated with the use of the service organization and to design the audit procedures accordingly. The other options may also be relevant, but they are not specifically required in this situation.

When an Audit Client Uses a Service Organization,the Auditor Is