When an audit client uses a service organization to manage their investment activity,
A) the auditor can always rely on the internal controls of the service organization.
B) the auditor must state in their audit opinion that the client uses a service organization.
C) the auditor can rely on the internal controls of the service organization if the service organization's auditor issues a report on their internal control.
D) the auditor must rely on the service organization to determine the fair level 1, 2, and 3 estimates.
C
You might also like to view...
________ requires that any profits made by a statutory insider on transactions involving short-swing profits belong to the corporation
A) Section 5 of the Securities Act of 1933 B) Section 12 of the Securities Act of 1933 C) Section 16(b) of the Securities Exchange Act of 1934 D) SEC Rule 10b-5
Can risk be completely eliminated?
A) No, never B) Yes, as long as the exposure units are positively correlated C) Yes, as long as the exposure units are not correlated and enough are in the pool D) Yes, as long as the correlation coefficient is 0.1