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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. Disclose Cook's assessed level of control risk for PDC.
C. Identify PDC's controls relevant to specific financial statement assertions.
D. Contain a disclaimer of opinion on the operating effectiveness of PDC's controls.
Answer: D
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
The BEST time to perform a penetration test is after:
A. an audit has reported weaknesses in security controls.
B. various infrastructure changes are made.
C. an attempted penetration has occurred.
D. a high turnover in systems staff.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Changes in the systems infrastructure are most likely to inadvertently introduce new exposures.
Conducting a test after an attempted penetration is not as productive since an organization should not wait until it is attacked to test its defenses. Any exposure identified by an audit should be corrected before it would be appropriate to test. A turnover in administrative staff does not warrant a penetration test, although it may- warrant a review of password change practices and configuration management.

NEW QUESTION: 3
Two fabric interconnects fail during a Cisco UCS firmware upgrade. Drag and drop the recovery steps from the left into the correct order on the right.

Answer:
Explanation: