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NEW QUESTION: 1
Payroll Data Co. (PDC) processes payroll transactions for a retailer. Cook, CPA, is engaged to express an
opinion on a description of PDC's internal controls placed in operation as of a specific date. These controls
are relevant to the retailer's internal control, so Cook's report may be useful in providing the retailer's
independent auditor with information necessary to plan a financial statement audit. Cook's report should:
A. State whether PDC's controls were suitably designed to achieve the retailer's objectives.
B. Contain a disclaimer of opinion on the operating effectiveness of PDC's controls.
C. Disclose Cook's assessed level of control risk for PDC.
D. Identify PDC's controls relevant to specific financial statement assertions.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. There are two types of reports on the processing of transactions by service
organizations: "reports on controls placed in operation" and "reports on controls placed in operation and
tests of operating effectiveness." The former does not include tests of operating effectiveness and,
therefore, are not intended to provide the user auditor with a basis for reducing the assessment of control
risk. Accordingly, such reports should include a disclaimer of opinion regarding the operating effectiveness
of the controls.
Choice "B" is incorrect. The report should contain an indication that the controls were suitably designed to
achieve specified control objectives, but it does not provide any assurance regarding the achievement of
the user organization's (in this case, the retailer's) objectives.
Choice "C" is incorrect. The service auditor (Cook) is not required to identify the service organization's (i.e.,
PDC's) controls relevant to specific financial statement assertions because this is not a financial statement
audit.
Choice "D" is incorrect. The service auditor (Cook) is not required to disclose the assessed level of control
risk for the service organization (PDC).

NEW QUESTION: 2
On the network shown in the following figure, all interface run OSPFv3. How many DRs exist on the network?
A. 0
B. 1
C. 2
D. 3
Answer: C

NEW QUESTION: 3
Which of the following is not a specific element of duodenal ulcers?
A. Primarily affects males
B. Can lead to weight gain
C. Occasional malignancy
D. Affects people over 65
Answer: D