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    PracticeCPA®CPA ISC Practice Exam 3Question 16
    Medium1 markMultiple Choice
    Area III: SOC EngagementsSOC EngagementCUEC

    CPA · Question 16 · Area III: SOC Engagements

    Which of the following is a 'Complementary User Entity Control' (CUEC) likely to be found in a payroll service provider's SOC 1® report?

    Answer options:

    A.

    The service provider backs up the payroll database nightly.

    B.

    The user entity must notify the service provider of terminated employees within 24 hours.

    C.

    The service provider encrypts data in transit.

    D.

    The service provider performs background checks on its employees.

    How to approach this question

    Identify the control that the CLIENT (User Entity) must perform, not the auditor or service provider.

    Full Answer

    B.The user entity must notify the service provider of terminated employees within 24 hours.✓ Correct
    CUECs are controls that the service organization assumes, in the design of its system, will be implemented by user entities (customers) to achieve the control objectives. Notifying the provider of terminations is a classic user responsibility.

    Common mistakes

    Selecting a control performed by the service provider.
    Question 15All questionsQuestion 17

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