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... 1. A Type ___ report assesses the controls and their suitability. 2. A Type

ID: 336793 • Letter: #

Question

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1. A Type ___ report assesses the controls and their suitability. 2. A Type ___ report assesses the controls, their suitability, and effectiveness. 3. ______ auditors are the auditors of a service organization. 4. There are _____ types of reports that auditors of service organizations (service auditors) can provide. 5. Type 2 reports address operating _______; Type 1 do not. Use your cursor to match each example to the type of control it describes Segregation of duties Preventive Control Maintaining backups of data Detective Control A requirement to prepare bank reconciliations Corrective Control

Explanation / Answer

1) A Type 1 report assesses the controls and their suitability.  

2) A Type 2 report assesses the controls, their suitability, and effectiveness.   

3) Service auditors are the auditors of a service organization.   

4) There are two types of reports that auditors of service organizations (service auditors) can provide.   

5) Type 2 reports address operating effectiveness; Type 1 do not.

Match the column

Preventive control are the proactive measures that a company takes in order to prevent undesirable events from happening with the intent of preventing a loss.

Detective control do not prevent a loss from occurring but instead provide evidence of a loss that has occurred.

Corrective control helps in correcting previously identified incorrect actions and recovering from a loss.

1) Preventive control — Segregation of duties

2) Detective control — A requirement to prepare bank reconciliations

3) Corrective control — Maintaining backups of data