If a client uses ADP, a service center, for processing payroll,None of these.auditing standards require the auditor to test ADP’s controls since the service center application involves processing significant financial data.the auditor can assume that the controls are adequate because it is an independent enterprise.and the user auditor decides to rely on ADP’s auditor's report, the user auditor must make reference to the report of the service auditor in the opinion on the user organization's financial statements.

ADP is automatic data processing facility for payroll processing. This type of processing is done by…

Answered: If a client uses ADP, a service center,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If a client uses ADP, a service center, for processing payroll,

None of these.
auditing standards require the auditor to test ADP’s controls since the service center application involves processing significant financial data.
the auditor can assume that the controls are adequate because it is an independent enterprise.
and the user auditor decides to rely on ADP’s auditor's report, the user auditor must make reference to the report of the service auditor in the opinion on the user organization's financial statements.

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