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Hannah and Joe, two auditors assigned to the attestation engagement for Babin LLC, a service firm, are discussing the client's accounting system, which is in

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Hannah and Joe, two auditors assigned to the attestation engagement for Babin LLC, a service firm, are discussing the client's accounting system, which is in part outsourced to a third-party service firm, Dixon LLC. The auditors have received the report from the service company's auditors which have concluded that Dixon LLC's internal controls are operating effectively, and that no issues with internal control are noted. Hannah and Joe are pleased to receive this report, however are cognizant that problems may still exist in the service firm's system of internal control. Which of the following represent reasons why Hannah and Joe may still be skeptical? (Select all that apply) 0 The audit report received, despite noting no issues in internal control, cannot provide a guarantee that no weaknesses exist. Because Hannah and Joe's firm did not complete this audit of the client's system of internal control, the report does not offer any assurance. It is possible that the report received on internal control from the service firm's auditors do not cover every aspect of the client's system of internal control. Unless the third-part auditors report can offer absolute assurance of no problems or weaknesses in internal control, the auditors cannot rely on the report

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