While conducting an audit of a service provider, an IS auditor observes that the service provider has outsourced a part of the work to another provider. Since the work involves confidential information, the IS auditor’s PRIMARY concern shouldbe that the:

A.
requirement for protecting confidentiality of information could be compromised.

B.
contract may be terminated because prior permission from the outsourcer was not obtained.

C.
other service provider to whom work has been outsourced is not subject to audit.

D.
outsourcer will approach the other service provider directly for further work.

Explanation:
Many countries have enacted regulations to protect the confidentiality of information maintained in their countries and/or exchanged with other countries. Where a service provider outsources part of its services to another service provider, there is a potential risk that the confidentiality of the information will be compromised. Choices B and C could be concerns but are not related to ensuring the confidentiality of information. There is no reason why an IS auditor should be concerned with choice D.