The auditor should evaluate the ability of an organization to continue to operate should the data processing center be destroyed.

Most organizations have reacted to the risk by developing comprehensive backup plans.

Required:

a. Identify the major elements that should be included in a comprehensive data processing backup plan.

b. Contrast the potential roles of the external auditor and internal auditor in evaluating the effectiveness of the organization’s backup plan for computer processing capabilities.

c. What is the impact on the auditor’s report if the auditor concludes that an audit client has concentrated all its data processing in one location and: does not have any backup plans, and that its data processing center has moderate security provisions?