What action should the auditor take, considering the outsourcing decision?

An auditor is scheduled to audit payroll controls for a company which has recently outsourced its processing to an information service bureau.

What action should the auditor take, considering the outsourcing decision?
A . Review the controls over payroll in both the company and the service bureau.
B . Review only the company’s controls over data sent to and received from the service bureau.
C . Review only the controls over payments to the service bureau based on the contract.
D . Cancel the engagement because the processing is being performed outside of the organization.

View Answer

Answer: A