Final answer:
The auditor should use the same criteria to evaluate an independent computer service center's internal controls as they would for the client's internal controls, with due consideration for any additional factors specific to the service center.
Step-by-step explanation:
When the auditor is obtaining an understanding of the independent computer service center’s internal controls, the appropriate course of action would be to use the same criteria used to evaluate the client’s internal controls.
This is because the service center's controls are part of the information system environment that affects the client's financial reporting.
However, the auditor might need to consider additional factors specific to the service center, such as the nature of services provided and the center's own control environment.
Nonetheless, the fundamental criteria for evaluating internal controls would remain consistent.
When the auditor is obtaining an understanding of the independent computer service center's internal controls, the auditor should use the same criteria used to evaluate the client's internal controls.
The auditor needs to assess the effectiveness and reliability of the internal controls in the service center, just as they would do for the client.
However, they may need to omit tests of transactions as they are focused on the internal controls themselves, rather than the actual transactions.