Problem

When a company uses a service organization to prepare its payroll, the company’s auditorsA...

When a company uses a service organization to prepare its payroll, the company’s auditors

A. Have no obligation concerning the internal controls at the service organization.

B. Need to understand the internal controls over the transaction regardless of the location of the control.

C. Must audit the internal controls at the service organization.

D. Should include the audit report of the service company’s auditors with their auditors’ report.

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