1. An audit manager working on the audit of Jackson LLC has received a Service Organization and Controls (SOC) 1 Type 1 report from the service auditor. The service auditor's report indicates that the client's service company has a strong and effective system of internal control. As a result of this finding, what might the auditor decide to do with respect to the client's system of internal control?

		The auditor should perform planned procedures on the client's system of internal control, as a Type 1 report does not permit the auditor to assess control risk below the maximum.
		The auditor should focus on substantive testing only, and can use the service auditor's report to provide reasonable assurance on internal control.
		The auditor should plan to amend the planned procedures of the client's system of internal control, to match the audit procedures conducted by the service auditor.
		None of these answer choices are correct.