When the client uses a service organization,the auditor obtains evidence by one or more of the following methods:
A)obtain a report prepared by the auditor of the service organization that describes the service organization's system
B)obtain a report prepared by the auditor of the service organization that evaluates the appropriateness of the design of internal controls
C)request the management of the service organization to perform test of controls at the direction of the auditor
D)perform tests of controls at the service organization
E)perform tests of the client's controls over the activities performed by the service organization
F)both A and B
G)both C and D
H)Both D and E

Question

Quizplus · Accepted Answer

When auditing a client that uses a service organization, the auditor can obtain evidence by performing tests of controls at the service organization (D) and by performing tests of the client's controls over the activities performed by the service organization (E). These methods allow the auditor to assess the effectiveness of the service organization's controls and the client's oversight of those controls.

When the Client Uses a Service Organization,the Auditor Obtains Evidence