$[$LO $4]$ John is about to start on the audit of Bourdain Restaurants, a local restaurant chain. In reviewing last year$$s work papers, John learns that Bourdain Restaurants uses an outside service provider for its payroll services. Last year the service organization was treated as a part of the Bourdain$$s information system, and the audit team relied on a Type II SAS $70$ report. After carefully reviewing the work papers, John asks the senior for more information. What information will John receive from the senior on the following questions? Required: $($a$)$ What is a SAS $70$ engagement? What is the difference between a Type $1$ and Type II SAS $70$ report? $($b$)$ What characteristics should John look for this year to decide whether the outside service organization is still a part of Bourdain$$s information system? $($c$)$ What must the audit team consider when deciding whether the SAS $70$ audit report provides sufficient evidence about the operating effectiveness of controls? $($d$)$ Assume that Bourdain Restaurants has made a change and for the current year obtains a Type I rather than a Type II SAS $70$ report. List the audit procedures the senior will expect John and the audit team to perform.