AUD 3 Internal Control 15 - 2 Service Organizations Flashcards
1
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
2
Q
Service Organizations
Tra_________s processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
3
Q
Service Organizations
Transactions processed by ser____ organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
4
Q
Service Organizations
Transactions processed by service organization
(pay____ processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
5
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in pl___ at client.
- TofC in pl___ at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
6
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at ser____ organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
7
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another au_____.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
8
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get re____ from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
9
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (ser____ auditor).
- A service auditor should inquire of management about subsequent events.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
10
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A ser____ auditor should inquire of management about subsequent events.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
11
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of ma_________ about subsequent events.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
12
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent e____s.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
- Get report from the other Auditor (service auditor).
- A service auditor should inquire of management about subsequent events.
13
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls operating effectiveness.
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
• A service auditor should inquire of management about subsequent events.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- TofC in place at client.
- TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls operating effectiveness.
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
• A service auditor should inquire of management about subsequent events.
14
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• TofC in place at service organization by an______ auditor.
o Report on whether controls have been implemented and controls operating effectiveness.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls operating effectiveness.
15
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• TofC in place at service organization by another auditor.
o Re\_\_\_\_ on whether controls have been implemented and controls operating effectiveness.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls operating effectiveness.
16
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• TofC in place at service organization by another auditor.
o Report on whether con\_\_\_\_s have been implemented and controls operating effectiveness.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls operating effectiveness.
17
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• TofC in place at service organization by another auditor.
o Report on whether controls have been impl\_\_\_\_\_\_\_ed and controls operating effectiveness.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls operating effectiveness.
18
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and con\_\_\_\_s operating effectiveness.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls operating effectiveness.
19
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls op\_\_\_\_ing effectiveness.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls operating effectiveness.
20
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls operating ef\_\_\_\_\_\_\_\_ess.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls operating effectiveness.
21
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get re____ from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
22
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the ot___ Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
23
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Ex\_\_\_\_\_\_es an opinion on management’s assertions regarding:
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
24
Q
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an op\_\_\_\_\_ on management’s assertions regarding
A
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
25
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s as________s regarding:
▪ Management’s description of the service organization’s system
▪ The controls related to the control objectives stated in management’s description
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system
▪ The controls related to the control objectives stated in management’s description
26
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s de________ of the service organization’s system
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system
27
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the ser____ organization’s system fairly presents the system
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system
28
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system f____y presents the system that was designed and implemented during the period.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
29
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly pr_______s the system that was designed and implemented during the period.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
30
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was de____ed and implemented during the period.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
31
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and imp______ed during the period.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
32
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The co_____s related to the control objectives
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives
33
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control obj______es stated in management’s description
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description
34
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in ma________’s description
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description
35
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were s___ably designed
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed a
36
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably de____ed and operated effectively during the period.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
37
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and op_____d effectively during the period.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
38
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated eff_____ly during the period.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
39
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively d___ng the period.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
40
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The re____also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
41
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
o The report also in_____s a description of the tests of controls
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
o The report also includes a description of the tests of controls
42
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
o The report also includes a des_______ of the tests of controls
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
o The report also includes a description of the tests of controls
43
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o The report also includes a description of the t___s of controls
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o The report also includes a description of the tests of controls
44
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o The report also includes a description of the tests of co_____s and the results of those tests that were performed by the service auditor.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
45
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o The report also includes a description of the tests of controls and the re____s of those tests that were performed by the service auditor.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
46
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o The report also includes a description of the tests of controls and the results of those tests that were per____ed by the service auditor.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
47
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o The report also includes a description of the tests of controls and the results of those tests that were performed by the ser____ auditor.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
48
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
o The re____ also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
49
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service au_____.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
50
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Desc_______ of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
51
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Sc___ and nature of procedures performed.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures performed.
52
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and na____ of procedures performed.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures performed.
53
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of proc_____s performed.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures performed.
54
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures pe_____ed.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures performed.
55
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures performed.
o ID party specifying obj______s.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
56
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID pur____ of engagement.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
57
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of eng______.
o ID parties Intended use.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
58
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended u__.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
59
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Int___ed use.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
60
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (ser____ auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
61
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Exp____es an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a des______ of the tests of controls and the results of those tests that were performed by the service auditor.
o Desc_____ of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
62
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opi____ on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the t___s of controls and the results of those tests that were performed by the service auditor.
o Description of the Sc___ and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
63
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s as________s regarding:
▪ Management’s des_______ of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The co_____s related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
64
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the ser____ organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control obj_____s stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
65
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
* TofC in place at client.
* TofC in place at service organization by another auditor.
* Get report from the other Auditor (service auditor).
* A service au_____ should inquire of management about subsequent events.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
* TofC in place at client.
* TofC in place at service organization by another auditor.
* Get report from the other Auditor (service auditor).
* A service auditor should inquire of management about subsequent events.
66
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
* TofC in place at cl_____
* TofC in place at service organization by another auditor.
* Get report from the other Auditor (service auditor).
* A service auditor should inquire of management about subsequent events.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
* TofC in place at client.
* TofC in place at service organization by another auditor.
* Get report from the other Auditor (service auditor).
* A service auditor should inquire of management about subsequent events.
67
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
* TofC in place at client.
* TofC in place at ser___ organization by another auditor.
* Get report from the other Auditor (service auditor).
* A service auditor should inquire of management about subsequent events.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
* TofC in place at client.
* TofC in place at service organization by another auditor.
* Get report from the other Auditor (service auditor).
* A service auditor should inquire of management about subsequent events.
68
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
* TofC in place at client.
* TofC in place at service organization by another auditor.
* Get report from the o____ Auditor (service auditor).
* A service auditor should inquire of management about subsequent events.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
* TofC in place at client.
* TofC in place at service organization by another auditor.
* Get report from the other Auditor (service auditor).
* A service auditor should inquire of management about subsequent events.
69
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
* TofC in place at client.
* TofC in place at service organization by another auditor.
* Get report from the other Auditor (service auditor).
* A service auditor should inquire of man________ about subsequent events.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
* TofC in place at client.
* TofC in place at service organization by another auditor.
* Get report from the other Auditor (service auditor).
* A service auditor should inquire of management about subsequent events.
70
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
* TofC in place at client.
* TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls operating effectiveness.
• G__ report from the other Auditor (ser____ auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
• A service auditor should inquire of management about subsequent events.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
* TofC in place at client.
* TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls operating effectiveness.
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
• A service auditor should inquire of management about subsequent events.
71
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
* TofC in pl___ at client.
* TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls operating effectiveness.
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
• A service auditor should inquire of management about subsequent events.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
* TofC in place at client.
* TofC in place at service organization by another auditor.
o Report on whether controls have been implemented and controls operating effectiveness.
• Get report from the other Auditor (service auditor).
o Expresses an opinion on management’s assertions regarding:
▪ Management’s description of the service organization’s system fairly presents the system that was designed and implemented during the period.
▪ The controls related to the control objectives stated in management’s description were suitably designed and operated effectively during the period.
o The report also includes a description of the tests of controls and the results of those tests that were performed by the service auditor.
o Description of the Scope and nature of procedures performed.
o ID party specifying objectives.
o ID purpose of engagement.
o ID parties Intended use.
• A service auditor should inquire of management about subsequent events.
72
Service Organizations
As part of ob___ing an understanding of the internal controls of a client using a service organization,
Service Organizations
As part of obtaining an understanding of the internal controls of a client using a service organization,
73
Service Organizations
As part of obtaining an understanding of the internal con____s of a client using a service organization,
Service Organizations
As part of obtaining an understanding of the internal controls of a client using a service organization,
74
Service Organizations
As part of obtaining an understanding of the internal controls of a client using a ser____ organization,
the auditor should obtain an understanding as to how the client uses the service organization.
Service Organizations
As part of obtaining an understanding of the internal controls of a client using a service organization,
the auditor should obtain an understanding as to how the client uses the service organization.
75
Service Organizations
As part of obtaining an understanding of the internal controls of a client using a service organization,
the auditor should obtain an understanding as to h__ the client uses the service organization.
Service Organizations
As part of obtaining an understanding of the internal controls of a client using a service organization,
the auditor should obtain an understanding as to how the client uses the service organization.
76
Service Organizations
As part of obtaining an understanding of the internal controls of a client using a service organization,
the auditor should obtain an understanding as to how the client u__s the service organization.
Service Organizations
As part of obtaining an understanding of the internal controls of a client using a service organization,
the auditor should obtain an understanding as to how the client uses the service organization.
77
Service Organizations
As part of obtaining an understanding of the internal controls of a client using a service organization,
the auditor should obtain an understanding as to how the client uses the service organization.
The understanding will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
Service Organizations
As part of obtaining an understanding of the internal controls of a client using a service organization,
the auditor should obtain an understanding as to how the client uses the service organization.
The understanding will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
78
Service Organizations
As part of obtaining an understanding of the internal controls of a client using a service organization, the auditor should obtain an understanding as to how the client uses the service organization.
The understanding will include:
• The na____ of the services provided;
Service Organizations
As part of obtaining an understanding of the internal controls of a client using a service organization, the auditor should obtain an understanding as to how the client uses the service organization.
The understanding will include:
• The nature of the services provided;
79
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
• The nature of the ser____s provided;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
• The nature of the services provided;
80
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
• The nature of the services pro____d;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
• The nature of the services provided;
81
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The sig________ of the services to the user entity;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
82
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the ser____s to the user entity;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
83
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the u__r entity;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
84
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The significance of the services to the user entity;
* The ef____ on the user entity’s internal control;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
85
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The significance of the services to the user entity;
* The effect on the user entity’s int_____ control;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
86
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The significance of the services to the user entity;
* The effect on the u__r entity’s internal control;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
87
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The significance of the services to the user entity;
* The effect on the user entity’s internal con____;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
88
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The effect on the user entity’s internal control;
* The na____ and materiality of transactions that are processed by the service organization;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
89
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The effect on the user entity’s internal control;
* The nature and mat______ of transactions that are processed by the service organization;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
90
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The effect on the user entity’s internal control;
* The nature and materiality of tra_________s that are processed by the service organization;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
91
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the ser____ organization;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
92
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature and materiality of transactions that are processed by the service organization;
* Inte______ between the activities of the user entity and of the service organization;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
93
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the ac_____ies of the user entity and of the service organization;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
94
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the u__r entity and of the service organization;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
95
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature and materiality of transactions that are processed by the service organization;
* Interaction bet___n the activities of the user entity and of the service organization;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
96
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the ser____ organization;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
97
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* Interaction between the activities of the user entity and of the service organization;
* The na____ of the relationship between the entities;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities;
98
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relati______ between the entities;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities;
99
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship bet____ the entities;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities;
100
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the en___ies;
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities;
101
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the relationship between the entities;
* Contractual t___s for activities performed by the service organization.
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the relationship between the entities;
* Contractual terms for activities performed by the service organization.
102
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the relationship between the entities;
* Con________ terms for activities performed by the service organization.
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the relationship between the entities;
* Contractual terms for activities performed by the service organization.
103
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the relationship between the entities;
* Contractual terms for activities per____ed by the service organization.
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the relationship between the entities;
* Contractual terms for activities performed by the service organization.
104
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the relationship between the entities;
* Contractual terms for activities performed by the ser____ organization.
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the relationship between the entities;
* Contractual terms for activities performed by the service organization.
105
Service Organizations
The understanding will include:
* The na____ of the ser____s provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
Service Organizations
The understanding will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
106
Service Organizations
The understanding will include:
* The nature of the services provided;
* The sign_______ of the ser____s to the user entity;
* The effect on the user entity’s internal control;
Service Organizations
The understanding will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
107
Service Organizations
The understanding will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The ef____ on the u__r entity’s internal control;
Service Organizations
The understanding will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
108
Service Organizations
The understanding will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The ef____ on the user entity’s internal con____;
Service Organizations
The understanding will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
109
Service Organizations
The understanding will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The na____ and mat________ of transactions that are processed by the ser____ organization;
Service Organizations
The understanding will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
110
Service Organizations
The understanding will include:
* The nature and materiality of transactions that are processed by the service organization;
* Inte______ between the ac___ties of the user entity and of the ser____ organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
Service Organizations
The understanding will include:
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
111
Service Organizations
The understanding will include:
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The na____ of the rela_______between the entities; and
* Contractual terms for activities performed by the service organization.
Service Organizations
The understanding will include:
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
112
Service Organizations
As part of obtaining an understanding of the internal controls of a client using a service organization, the auditor should obtain an understanding as to how the client uses the service organization.
The understanding will include:
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Cont_______ terms for activities performed by the ser____organization.
Service Organizations
As part of obtaining an understanding of the internal controls of a client using a service organization, the auditor should obtain an understanding as to how the client uses the service organization.
The understanding will include:
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
113
Service Organizations
The un_______ing of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
114
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The na____ of the services provided;
* The sign_______ of the services to the user entity;
* The ef____ on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
115
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The na____ and materiality of transactions that are processed by the service organization;
* Inter_______ between the activities of the user entity and of the service organization;
* The na____ of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
116
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Cont______ t___s for activities performed by the service organization.
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
117
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the ser____s provided;
* The significance of the ser____s to the user entity;
* The effect on the user entity’s internal con____;
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
118
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are pro____ed by the service organization;
* Interaction between the activities of the user entity and of the service orga________;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
119
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual t___s for a_____ies performed by the service organization.
Service Organizations
The understanding of the internal controls of a client using a service organization will include:
* The nature of the services provided;
* The significance of the services to the user entity;
* The effect on the user entity’s internal control;
* The nature and materiality of transactions that are processed by the service organization;
* Interaction between the activities of the user entity and of the service organization;
* The nature of the relationship between the entities; and
* Contractual terms for activities performed by the service organization.
120
Service Organizations
The auditor will also evaluate the internal co_____s established by the user entity
Service Organizations
The auditor will also evaluate the internal controls established by the user entity
121
Service Organizations
The au_____ will also evaluate the internal controls established by the user entity
Service Organizations
The auditor will also evaluate the internal controls established by the user entity
122
Service Organizations
The auditor will also ev______ the internal controls established by the user entity
Service Organizations
The auditor will also evaluate the internal controls established by the user entity
123
Service Organizations
The auditor will also evaluate the internal controls established by the us__ entity
Service Organizations
The auditor will also evaluate the internal controls established by the user entity
124
Service Organizations
The auditor will also evaluate the internal controls es_______ed by the user entity
to administer the relationship with the service organization.
Service Organizations
The auditor will also evaluate the internal controls established by the user entity
to administer the relationship with the service organization.
125
Service Organizations
The auditor will also evaluate the internal controls established by the user entity
to admi_____ the relationship with the service organization.
Service Organizations
The auditor will also evaluate the internal controls established by the user entity
to administer the relationship with the service organization.
126
Service Organizations
The auditor will also evaluate the internal controls established by the user entity
to administer the relationship with the ser____organization.
Service Organizations
The auditor will also evaluate the internal controls established by the user entity
to administer the relationship with the service organization.
127
Service Organizations
The auditor will also evaluate the internal controls established by the user entity
to administer the rela________ with the service organization.
Service Organizations
The auditor will also evaluate the internal controls established by the user entity
to administer the relationship with the service organization.
128
Service Organizations
The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.
The entity may, for example, have con___s to verify the accuracy of the output of the service organization.
Service Organizations
The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.
The entity may, for example, have controls to verify the accuracy of the output of the service organization.
129
Service Organizations
The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.
The entity may, for example, have controls to v____y the accuracy of the output of the service organization.
Service Organizations
The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.
The entity may, for example, have controls to verify the accuracy of the output of the service organization.
130
Service Organizations
The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.
The entity may, for example, have controls to verify the accuracy of the out___ of the service organization.
Service Organizations
The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.
The entity may, for example, have controls to verify the accuracy of the output of the service organization.
131
Service Organizations
The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.
The entity may, for example, have controls to verify the acc____y of the output of the service organization.
Service Organizations
The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.
The entity may, for example, have controls to verify the accuracy of the output of the service organization.
132
Service Organizations
The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.
The entity may, for example, have controls to verify the accuracy of the output of the service organization.
The auditor will use the un________ing of the nature and significance of the services provided by the service organization, along with the entity’s related controls, to identify and assess risks of material misstatement that may result.
Service Organizations
The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.
The entity may, for example, have controls to verify the accuracy of the output of the service organization.
The auditor will use the understanding of the nature and significance of the services provided by the service organization, along with the entity’s related controls, to identify and assess risks of material misstatement that may result.
133
Service Organizations
The auditor will u__ the understanding of the nature
Service Organizations
The auditor will use the understanding of the nature
134
Service Organizations
The auditor will use the understanding of the nat___
Service Organizations
The auditor will use the understanding of the nature
135
Service Organizations
The auditor will use the understanding of the
nature and
sign________ of the services
Service Organizations
The auditor will use the understanding of the
nature and
significance of the services
136
Service Organizations
The auditor will use the understanding of the
nature and
significance of the services provided by the ser____ organization,
Service Organizations
The auditor will use the understanding of the
nature and
significance of the services provided by the service organization,
137
Service Organizations
The auditor will use the understanding of the
nature and
significance of the services provided by the service organization,
along with the entity’s re___ed controls,
Service Organizations
The auditor will use the understanding of the
nature and
significance of the services provided by the service organization,
along with the entity’s related controls,
138
Service Organizations
The auditor will use the understanding of the
nature and
significance of the services provided by the service organization,
along with the entity’s related controls,
to id_____y and assess risks of material misstatement that may result.
Service Organizations
The auditor will use the understanding of the
nature and
significance of the services provided by the service organization,
along with the entity’s related controls,
to identify and assess risks of material misstatement that may result.
139
Service Organizations
The auditor will use the understanding of the
nature and
significance of the services provided by the service organization,
along with the entity’s related controls,
to identify and as____ risks of material misstatement that may result.
Service Organizations
The auditor will use the understanding of the
nature and
significance of the services provided by the service organization,
along with the entity’s related controls,
to identify and assess risks of material misstatement that may result.
140
Service Organizations
The auditor will use the understanding of the
nature and
significance of the services provided by the service organization,
along with the entity’s related controls,
to identify and assess r___s of material misstatement that may result.
Service Organizations
The auditor will use the understanding of the
nature and
significance of the services provided by the service organization,
along with the entity’s related controls,
to identify and assess risks of material misstatement that may result.
141
Service Organizations
The auditor will use the un________ing of the nature
and significance of the services provided by the service organization,
along with the entity’s related controls,
to identify and assess risks of material misstatement that may result.
Service Organizations
The auditor will use the understanding of the nature
and significance of the services provided by the service organization,
along with the entity’s related controls,
to identify and assess risks of material misstatement that may result.
142
Service Organizations
The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.
The entity may, for example, have controls to verify the accuracy of the output of the service organization.
The auditor will use the understanding of the nature and significance of the services provided by the service organization, along with the entity’s related controls, to identify and assess risks of material misstatement that may result.
Service Organizations
The auditor will also evaluate the internal controls established by the user entity to administer the relationship with the service organization.
The entity may, for example, have controls to verify the accuracy of the output of the service organization.
The auditor will use the understanding of the nature and significance of the services provided by the service organization, along with the entity’s related controls, to identify and assess risks of material misstatement that may result.
143
Service Organizations
In some cases,
the auditor will be una___ to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.
144
Service Organizations
In some cases,
the auditor will be unable to obtain a suffi____ understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.
145
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient un_________ing of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.
146
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the na____
and significance of the relationship with a service organization
using the resources available through the user entity.
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.
147
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and signi_______ of the relationship with a service organization
using the resources available through the user entity.
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.
148
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the rela________ with a service organization
using the resources available through the user entity.
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.
149
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a se_____ organization
using the resources available through the user entity.
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.
150
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the re____es available through the user entity.
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.
151
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the us__ entity.
Service Organizations
In some cases,
the auditor will be unable to obtain a sufficient understanding of the nature
and significance of the relationship with a service organization
using the resources available through the user entity.
152
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will ob____ a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
153
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a suf______ understanding by performing one or more of the following:
• Obtaining and reading a type 1 or type 2 report, if available;
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
• Obtaining and reading a type 1 or type 2 report, if available
154
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by pe_____ing one or more of the following:
• Obtaining and reading a type 1 or type 2 report, if available
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
• Obtaining and reading a type 1 or type 2 report, if available
155
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
• Ob____ing and reading a type 1 or type 2 report, if available
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
• Obtaining and reading a type 1 or type 2 report, if available
156
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
• Obtaining and r___ing a type 1 or type 2 report, if available
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
• Obtaining and reading a type 1 or type 2 report, if available
157
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
• Obtaining and reading a type 1 or type 2 re____, if available
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
• Obtaining and reading a type 1 or type 2 report, if available
158
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available
* Obtain information from con____ with the service organization, through the user entity;
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available
* Obtain information from contact with the service organization, through the user entity;
159
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available
* Obtain information from contact with the service organization, through the us__ entity;
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available
* Obtain information from contact with the service organization, through the user entity;
160
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available
* Obtain infor_____ from contact with the service organization, through the user entity;
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available
* Obtain information from contact with the service organization, through the user entity;
161
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available
* Obtain information from contact with the service organization, through the user entity;
* Apply pro_______s directly to the operations of the service organization;
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization;
162
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtain information from contact with the service organization, through the user entity;
* A___y procedures directly to the operations of the service organization;
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization;
163
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization;
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization;
164
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures di____ly to the operations of the service organization;
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization;
165
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Apply procedures directly to the operations of the service organization; or
* Use the w__k of another auditor applying procedures designed to obtain the necessary information.
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
166
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Apply procedures directly to the operations of the service organization; or
* U__ the work of another auditor applying procedures designed to obtain the necessary information.
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
167
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
• Use the work of an_____ auditor applying procedures designed to obtain the necessary information.
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
• Use the work of another auditor applying procedures designed to obtain the necessary information.
168
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
• Use the work of another auditor applying pro_____s designed to obtain the necessary information.
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
• Use the work of another auditor applying procedures designed to obtain the necessary information.
169
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
• Use the work of another auditor applying procedures de____ed to obtain the necessary information.
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
• Use the work of another auditor applying procedures designed to obtain the necessary information.
170
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
• Use the work of another auditor applying procedures designed to obtain the ne______ry information.
Service Organizations
In such cases that the auditor will not able to obtain a sufficient understanding,
the auditor will obtain a sufficient understanding by performing one or more of the following:
• Use the work of another auditor applying procedures designed to obtain the necessary information.
171
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relat______ with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
172
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user en___y.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
173
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* O_____ing and reading a type 1 or type 2 report, if available;
* Ob____ information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
174
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and r___ing a type 1 or type 2 re____, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
175
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain inf_______ from contact with the ser____ organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
176
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service orga_______, through the us__ entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
177
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Ap___ procedures d_____y to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
178
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the ope_______s of the service org________; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
179
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* U__ the work of another au_____ applying procedures designed to obtain the necessary information.
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
180
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor ap___ing procedures designed to ob____ the necessary information.
Service Organizations
In some cases, the auditor will be unable to obtain a sufficient understanding of the nature and significance of the relationship with a service organization using the resources available through the user entity.
In such cases, the auditor will obtain a sufficient understanding by performing one or more of the following:
* Obtaining and reading a type 1 or type 2 report, if available;
* Obtain information from contact with the service organization, through the user entity;
* Apply procedures directly to the operations of the service organization; or
* Use the work of another auditor applying procedures designed to obtain the necessary information.
181
Service Organizations
There are two re____s that the auditor of a service organization may issue:
* A type 1 report
* A type 2 report
Service Organizations
There are two reports that the auditor of a service organization may issue:
* A type 1 report
* A type 2 report
182
Service Organizations
There are two reports that the auditor of a ser____ organization may issue:
* A type 1 report
* A type 2 report
Service Organizations
There are two reports that the auditor of a service organization may issue:
* A type 1 report
* A type 2 report
183
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the des____ of the controls.
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating eff______ess of the controls.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
184
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s des________ of the service organization’s system of controls
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls
185
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a re____ on management’s description of the service organization’s system of controls
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls
186
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on ma_______’s description of the service organization’s system of controls
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls
187
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s sy____ of controls and the suitability of the design of the controls.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
188
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls
and the s_______lity of the design of the controls.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls
and the suitability of the design of the controls.
189
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls
and the suitability of the de____ of the controls.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls
and the suitability of the design of the controls.
190
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the con____s.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives; and
o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives; and
o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions.
191
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s desc______of the system;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
192
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Ma________’s description of the system;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
193
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the sy____;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
194
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o M_________’s written assertion that, in all material respects, based on appropriate criteria,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
195
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written as_______ that, in all material respects, based on appropriate criteria,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
196
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s wr_____ assertion that, in all material respects, based on appropriate criteria,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
197
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all mat_____ respects, based on appropriate criteria,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
198
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on app________ criteria,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
199
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate crit____,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
200
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The des______ of the system fairly presents the system
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system
201
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the sy____ fairly presents the system
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system
202
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was de____ed and implemented as of a specified date
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date
203
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and imp________ed as of a specified date
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date
204
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a s_____fied date
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date
205
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified da__
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date
206
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Con____s related to objectives stated in management’s description
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description
207
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to obj_____s stated in management’s description
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description
208
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s de________ were suitably designed to achieve those objectives;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives;
209
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in m_________’s description were suitably designed to achieve those objectives;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives;
210
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were su____ly designed to achieve those objectives;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives;
211
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably de____ed to achieve those objectives;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives;
212
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to ach_____ those objectives;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives;
213
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those obj_____s;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives;
214
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives; and
o A report from the au_____ of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives; and
o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions.
215
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A report from the auditor of the se____ organization, referred to as the service auditor,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A report from the auditor of the service organization, referred to as the service auditor,
216
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A re____ from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions.
217
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an op_____ in relation to management’s written assertions.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions.
218
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A report from the auditor of the service organization, referred to as the service auditor,
ex______ing an opinion in relation to management’s written assertions.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions.
219
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in rel_____ to management’s written assertions.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions.
220
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written ass_______s.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions.
221
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s des______ of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s des______ of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives; and
o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives; and
o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions.
222
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the su____ility of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were s_____bly designed to achieve those objectives; and
o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives; and
o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions.
223
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written ass_____n that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives; and
o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written ass______s.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 1 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date and
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives; and
o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions.
224
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
225
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a re____ on management’s description of the service organization’s system of controls
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls
226
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s des________ of the service organization’s system of controls
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls
227
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the ser____ organization’s system of controls
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls
228
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of con____s
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls
229
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the s_____ility of the design of and the operating effectiveness of the controls.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
230
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the de____ of and the operating effectiveness of the controls.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
231
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the op____ing effectiveness of the controls.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
232
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating eff_______ess of the controls.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
233
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the con____s.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
234
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
235
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s des_______ of the system;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
236
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o M_________’s description of the system;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
237
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the sy_____;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
238
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s wri____ assertion that, in all material respects,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects,
239
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written ass______ that, in all material respects,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects,
240
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in a__ material respects,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects,
241
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on ap________ criteria,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
242
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all ma______ respects, based on appropriate criteria,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
243
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate cri_____,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
244
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The des_______ of the system fairly presents the system that was designed
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed
245
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the sy____ fairly presents the system that was designed
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed
246
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system f___ly presents the system that was designed
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed
247
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the sy____ that was designed
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
248
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was de____ed and implemented as of a specified date,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
249
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and im_______ed as of a specified date,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
250
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified d___,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
251
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Con____s related to objectives stated in management’s description
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description
252
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to obj_____s stated in management’s description were suitably designed
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in management’s description were suitably designed
253
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in m_________’s description were suitably designed
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in management’s description were suitably designed
254
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in management’s de________ were suitably designed
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in management’s description were suitably designed
255
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in management’s description were s____bly designed to achieve those objectives,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives,
256
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in management’s description were suitably de____ed to achieve those objectives,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives,
257
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in management’s description were suitably designed to ach____ those objectives,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives,
258
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those obj______s,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives,
259
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The con____s related to the specified objectives were operating effectively
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively
260
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The controls related to the specified ob______s were operating effectively
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The controls related to the specified objectives were operating effectively t
261
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The controls related to the specified objectives were op_____ng effectively
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The controls related to the specified objectives were operating effectively
262
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The controls related to the specified objectives were operating ef______ly throughout the specified period;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The controls related to the specified objectives were operating effectively throughout the specified period;
263
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The controls related to the specified objectives were operating effectively throughout the specified pe____;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The controls related to the specified objectives were operating effectively throughout the specified period;
264
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The controls related to the specified objectives were operating effectively throughout the sp_____ied period;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The controls related to the specified objectives were operating effectively throughout the specified period;
265
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The controls related to the sp____ied objectives were operating effectively throughout the sp____ied period;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The controls related to the specified objectives were operating effectively throughout the specified period;
266
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The des______ of the sy____ fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
267
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system f___ly presents the sys___ that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
268
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was de____ed and im_______ed as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
269
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Con____s related to objectives stated in ma________’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
270
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were s_____ly de____ed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
271
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to ac_____ those ob____ives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
272
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The co____ls related to the specified objectives were operating eff______ly throughout the specified period; and
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
273
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were o______ing effectively thro_______ the specified period; and
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
274
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Ma________’s written as________ that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
275
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Ma________’s description of the system;
o Ma_________’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period;
276
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the sy____;
o Management’s written ass______ that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period;
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period;
277
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A re____ from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions and describing the tests of controls performed and the results of those tests.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions and describing the tests of controls performed and the results of those tests.
278
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the au_____ of the service organization, referred to as the service auditor,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
279
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the ser____ organization, referred to as the service auditor,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
280
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the ser____auditor,
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
281
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
ex_____ing an opinion in relation to management’s written assertions
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions
282
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an op______n relation to management’s written assertions
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions
283
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to ma________’s written assertions
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions
284
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written ass_____s
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions
285
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions
and de_____ing the tests of controls performed
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions
and describing the tests of controls performed
286
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions
and describing the tests of co_____s performed
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions
and describing the tests of controls performed
287
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions
and describing the tests of controls per____ed and the results of those tests.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions
and describing the tests of controls performed and the results of those tests.
288
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions
and describing the tests of controls performed and the re____s of those tests.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions
and describing the tests of controls performed and the results of those tests.
289
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions
and describing the tests of controls performed and the results of those t___s.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions
and describing the tests of controls performed and the results of those tests.
290
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a re____ on management’s des_______ of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions and describing the tests of controls performed and the results of those tests.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions and describing the tests of controls performed and the results of those tests.
291
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the s______ility of the de____ of and the op______ng effe______ess of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions and describing the tests of controls performed and the results of those tests.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor, expressing an opinion in relation to management’s written assertions and describing the tests of controls performed and the results of those tests.
292
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s des_______ of the system;
o Management’s wr_____ ass_____ that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A re____ from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
293
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the sy____;
o Management’s written assertion that, in all material respects, based on appropriate cri_____,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the ser____ auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
294
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor,
ex_____ing an opi_____ in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
295
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to m_________’s written as_______s and
describing the tests of controls performed and the results of those tests.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
296
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the t____s of co_____s performed and the results of those tests.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
297
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls per____ed and the re____s of those tests.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
298
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The des_______ of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Co_____s related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The co_____s related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
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Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
Service Organizations
There are two reports that the auditor of a service organization may issue:
• A type 2 report
is a report on management’s description of the service organization’s system of controls and the suitability of the design of and the operating effectiveness of the controls.
It consists of:
o Management’s description of the system;
o Management’s written assertion that, in all material respects, based on appropriate criteria,
▪ The description of the system fairly presents the system that was designed and implemented as of a specified date,
▪ Controls related to objectives stated in management’s description were suitably designed to achieve those objectives, and
▪ The controls related to the specified objectives were operating effectively throughout the specified period; and
o A report from the auditor of the service organization, referred to as the service auditor,
expressing an opinion in relation to management’s written assertions and
describing the tests of controls performed and the results of those tests.
