AUD 3 Internal Control 15 - 3 Service Organizations Flashcards
Service Organizations
Many companies use various types of ser____ bureaus to assist them with the processing of routine transactions.
Certain transactions, like payroll, may require a particular expertise and can often be processed more efficiently by an entity that specializes in that type of transaction.
One of the most common types of ser____ bureaus processes the payroll of various customer entities.
Service Organizations
Many companies use various types of service bureaus to assist them with the processing of routine transactions.
Certain transactions, like payroll, may require a particular expertise and can often be processed more efficiently by an entity that specializes in that type of transaction.
One of the most common types of service bureaus processes the payroll of various customer entities.
Service Organizations
Many companies use various types of service bureaus to assist them with the processing of routine transactions.
Certain transactions, like pay____, may require a particular expertise and can often be processed more efficiently by an entity that specializes in that type of transaction.
One of the most common types of service bureaus processes the pay____ of various customer entities.
Service Organizations
Many companies use various types of service bureaus to assist them with the processing of routine transactions.
Certain transactions, like payroll, may require a particular expertise and can often be processed more efficiently by an entity that specializes in that type of transaction.
One of the most common types of service bureaus processes the payroll of various customer entities.
Service Organizations
When an entity uses one of these ser____ bureaus,
also referred to as ser____ organizations,
AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
It defines a ser____ organization as
“an organization or segment of an organization that provides services to user entities
that are relevant to those user entities’ internal control over financial reporting.”
Service Organizations
When an entity uses one of these service bureaus,
also referred to as service organizations,
AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
It defines a service organization as
“an organization or segment of an organization that provides services to user entities
that are relevant to those user entities’ internal control over financial reporting.”
Service Organizations
When an entity uses one of these service bureaus,
also referred to as service organizations,
AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
It defines a service organization as
“an organization or segment of an organization that provides ser____s to us__ entities
that are relevant to those user entities’ internal control over financial reporting.”
Service Organizations
When an entity uses one of these service bureaus,
also referred to as service organizations,
AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
It defines a service organization as
“an organization or segment of an organization that provides services to user entities
that are relevant to those user entities’ internal control over financial reporting.”
Service Organizations
When an entity uses one of these service bureaus,
also referred to as service organizations,
AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
It defines a service organization as
“an organization or segment of an organization that provides services to user entities
that are relevant to those us__ entities’ int_____ control over financial reporting.”
Service Organizations
When an entity uses one of these service bureaus,
also referred to as service organizations,
AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
It defines a service organization as
“an organization or segment of an organization that provides services to user entities
that are relevant to those user entities’ internal control over financial reporting.”
Service Organizations
When an entity uses one of these service bureaus,
also referred to as service organizations,
AU-C section 402,
Audit Considerations Relating to an Entity Using a Ser____ Organization,
provides gui_____ as to the im____ on an audit.
It defines a service organization as
“an organization or segment of an organization that provides services to user entities
that are relevant to those user entities’ internal control over financial reporting.”
Service Organizations
When an entity uses one of these service bureaus,
also referred to as service organizations,
AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
It defines a service organization as
“an organization or segment of an organization that provides services to user entities
that are relevant to those user entities’ internal control over financial reporting.”
Service Organizations
When an entity uses one of these service bureaus,
also referred to as service organizations,
AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
It defines a ser____ organization as
“an organization or segment of an organization that provides services to user entities
that are rel_______ to those user entities’ internal control over fin______ reporting.”
Service Organizations
When an entity uses one of these service bureaus,
also referred to as service organizations,
AU-C section 402,
Audit Considerations Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
It defines a service organization as
“an organization or segment of an organization that provides services to user entities
that are relevant to those user entities’ internal control over financial reporting.”
Service Organizations
The obj_____e of the “user auditor”
(the auditor of the client using the services of the service organization)
Service Organizations
The objective of the “user auditor”
(the auditor of the client using the services of the service organization)
Service Organizations
The objective of the “user auditor”
(the auditor of the cli___ using the services of the service organization)
Service Organizations
The objective of the “user auditor”
(the auditor of the client using the services of the service organization)
Service Organizations
The objective of the “user auditor”
(the auditor of the client using the ser____s of the service organization)
Service Organizations
The objective of the “user auditor”
(the auditor of the client using the services of the service organization)
Service Organizations
The objective of the “user auditor”
(the auditor of the client using the services of the service organization)
are to obtain an understanding of the na____ and sig________ of the services provided,
and evaluate their effect on the user entity’s internal control
in order to assess the risks of material misstatement,
and to design and perform audit procedures responsive to those risks.
Service Organizations
The objective of the “user auditor”
(the auditor of the client using the services of the service organization)
are to obtain an understanding of the nature and significance of the services provided,
and evaluate their effect on the user entity’s internal control
in order to assess the risks of material misstatement,
and to design and perform audit procedures responsive to those risks.
Service Organizations
The objective of the “user auditor”
(the auditor of the client using the services of the service organization)
are to obtain an understanding of the nature and significance of the services provided,
and eva______ their ef____ on the user entity’s internal con____
in order to assess the risks of material misstatement,
and to design and perform audit procedures responsive to those risks.
Service Organizations
The objective of the “user auditor”
(the auditor of the client using the services of the service organization)
are to obtain an understanding of the nature and significance of the services provided,
and evaluate their effect on the user entity’s internal control
in order to assess the risks of material misstatement,
and to design and perform audit procedures responsive to those risks.
Service Organizations
The objective of the “user auditor”
(the auditor of the client using the services of the service organization)
are to obtain an understanding of the nature and significance of the services provided,
and evaluate their effect on the user entity’s internal control
in order to assess the r___s of mat_____ misstatement,
and to design and perform audit procedures responsive to those risks.
Service Organizations
The objective of the “user auditor”
(the auditor of the client using the services of the service organization)
are to obtain an understanding of the nature and significance of the services provided,
and evaluate their effect on the user entity’s internal control
in order to assess the risks of material misstatement,
and to design and perform audit procedures responsive to those risks.
Service Organizations
The objective of the “user auditor”
(the auditor of the client using the services of the service organization)
are to obtain an understanding of the nature and significance of the services provided,
and evaluate their effect on the user entity’s internal control
in order to assess the risks of material misstatement,
and to de____ and per____ audit procedures responsive to those risks.
Service Organizations
The objective of the “user auditor”
(the auditor of the client using the services of the service organization)
are to obtain an understanding of the nature and significance of the services provided,
and evaluate their effect on the user entity’s internal control
in order to assess the risks of material misstatement,
and to design and perform audit procedures responsive to those risks.
Service Organizations
The objective of the “user auditor”
(the auditor of the client using the services of the service organization)
are to obtain an understanding of the nature and significance of the services provided,
and evaluate their effect on the user entity’s internal control
in order to assess the risks of material misstatement,
and to design and perform audit proc_______s responsive to those r___s.
Service Organizations
The objective of the “user auditor”
(the auditor of the client using the services of the service organization)
are to obtain an understanding of the nature and significance of the services provided,
and evaluate their effect on the user entity’s internal control
in order to assess the risks of material misstatement,
and to design and perform audit procedures responsive to those risks.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to r__y on re____s of the auditor of the ser____ organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The ser____auditor will usually is___ a re____ on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control stru_____ that the user auditor may consider in as____ing the internal control str______ of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will des______ the se_____s of the organization that are covered by the report and a description of the auditor’s pro_______s.
This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the auditor of one of the service organization’s customers to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the user au_____ to understand the overall im____ of the ser____ organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the user auditor to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the user auditor to understand the overall impact of the service organization’s w__k on the internal control stru_____ of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the user auditor to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the user auditor to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the user auditor should be satisfied as to the comp_______ and indep________ of the ser____ auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the user auditor to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the user auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the user auditor to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be sa____ied as to the competence and independence of the service auditor, and the ad_____cy of the sta_______s under which the report was issued.
Service Organizations
Since the auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the auditor of the service organization itself, referred to as the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service organization’s auditor will describe the services of the organization that are covered by the report and a description of the auditor’s procedures.
This will enable the user auditor to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the user auditor is not in a position to examine the activities of such an out____ organization, they will often need to rely on reports of the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service auditor will describe the services of the organization that are covered by the report and a description of the service auditor’s procedures.
This will enable the user auditor to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
Since the user auditor is not in a position to examine the activities of such an outside organization, they will often need to rely on reports of the service auditor.
The service auditor will usually issue a report on the internal control structure that the user auditor may consider in assessing the internal control structure of the client.
The report on internal control structure by the service auditor will describe the services of the organization that are covered by the report and a description of the service auditor’s procedures.
This will enable the user auditor to understand the overall impact of the service organization’s work on the internal control structure of the customer.
Before relying on such a report, the auditor should be satisfied as to the competence and independence of the service auditor, and the adequacy of the standards under which the report was issued.
Service Organizations
The report of the service organization’s auditor will as___t the customer’s au____ in gaining an understanding of the internal control structure of the customer,
to the extent it depends on the service organization’s work.
This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,
so the use of the report is not a division of responsibility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer,
to the extent it depends on the service organization’s work.
This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,
so the use of the report is not a division of responsibility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an un________ing of the internal control stru_______ of the customer,
to the extent it depends on the service organization’s work.
This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,
so the use of the report is not a division of responsibility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer,
to the extent it depends on the service organization’s work.
This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,
so the use of the report is not a division of responsibility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer,
to the extent it de____s on the ser____ organization’s work.
This will n__, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,
so the use of the report is not a division of responsibility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer,
to the extent it depends on the service organization’s work.
This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,
so the use of the report is not a division of responsibility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer,
to the extent it depends on the service organization’s work.
This will n__, however, be considered a ba___ for determining the effe_______ess of the customer’s internal control structure,
so the use of the report is not a division of responsibility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer,
to the extent it depends on the service organization’s work.
This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,
so the use of the report is not a division of responsibility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer,
to the extent it depends on the service organization’s work.
This will not, however, be considered a basis for de____ining the eff_______ness of the customer’s internal control stru_____,
so the use of the report is not a division of responsibility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer,
to the extent it depends on the service organization’s work.
This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,
so the use of the report is not a division of responsibility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer,
to the extent it depends on the service organization’s work.
This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,
so the use of the report is n__ a div_____ of res______ility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer,
to the extent it depends on the service organization’s work.
This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,
so the use of the report is not a division of responsibility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer,
to the extent it depends on the service organization’s work.
This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,
so the use of the report is not a division of responsibility.
As a result, there must be NO refe________ to the ser____ auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer,
to the extent it depends on the service organization’s work.
This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,
so the use of the report is not a division of responsibility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer,
to the extent it depends on the service organization’s work.
This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,
so the use of the report is not a division of responsibility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
Service Organizations
The report of the service organization’s auditor will assist the customer’s auditor in gaining an understanding of the internal control structure of the customer,
to the extent it depends on the service organization’s work.
This will not, however, be considered a basis for determining the effectiveness of the customer’s internal control structure,
so the use of the report is not a division of responsibility.
As a result, there must be NO reference to the service auditor in the audit report on the financial statements of the customer.
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
AU-C section 402,
Au___ Considerations
Relating to an Entity Using a Service Organization,
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
AU-C section 402,
Audit Cons_________s
Relating to an Entity Using a Service Organization,
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
AU-C section 402,
Audit Considerations
Relating to an E____y Using a Service Organization,
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
AU-C section 402,
Audit Considerations
Relating to an Entity U___g a Service Organization,
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Se_____ Organization,
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Or_________,
provides guidance as to the impact on an audit.
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
AU-C section 402,
Audit Considerations
R____ing to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
pro____s guidance as to the impact on an audit.
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides gu_______ as to the impact on an audit.
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides guidance as to the im____ on an audit.
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an au___.
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
It defines a ser____ organization a
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
It defines a service organization
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
It de____s a service organization
AU-C section 402,
Audit Considerations
Relating to an Entity Using a Service Organization,
provides guidance as to the impact on an audit.
It defines a service organization
AU-C section 402
defines a service organization as
“an organization or segment of an org_________
AU-C section 402
defines a service organization as
“an organization or segment of an organization
AU-C section 402
defines a service organization as
“an org________ or segment of an organization
AU-C section 402
defines a service organization as
“an organization or segment of an organization
AU-C section 402
defines a service organization as
“an organization or seg____ of an organization
AU-C section 402
defines a service organization as
“an organization or segment of an organization
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that pro____s services to user entities
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides ser____s to user entities
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to u__r entities
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user e____ies
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
that are rele____ to those user entities’ internal control
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
that are relevant to those user entities’ internal control
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
that are relevant to those u__r entities’ internal control
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
that are relevant to those user entities’ internal control
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
that are relevant to those user entities’ internal con____
over financial reporting.”
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
that are relevant to those user entities’ internal control
over financial reporting.”
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
that are relevant to those user entities’ int_____ control
over financial reporting.”
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
that are relevant to those user entities’ internal control
over financial reporting.”
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
that are relevant to those user entities’ internal control
ov__ financial reporting.”
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
that are relevant to those user entities’ internal control
over financial reporting.”
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
that are relevant to those user entities’ internal control
over fina_____ reporting.”
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
that are relevant to those user entities’ internal control
over financial reporting.”
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
that are relevant to those user entities’ internal control
over financial re____ing.”
AU-C section 402
defines a service organization as
“an organization or segment of an organization
that provides services to user entities
that are relevant to those user entities’ internal control
over financial reporting.”
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.
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.
Service Organizations
Tran_______s processed by service organization
payroll processing) (AU-C 402/AT-C 320
Service Organizations
Transactions processed by service organization
payroll processing) (AU-C 402/AT-C 320
Service Organizations
Transactions pro____ed by service organization
payroll processing) (AU-C 402/AT-C 320
Service Organizations
Transactions processed by service organization
payroll processing) (AU-C 402/AT-C 320
Service Organizations
Transactions processed by ser____ organization
payroll processing) (AU-C 402/AT-C 320
Service Organizations
Transactions processed by service organization
payroll processing) (AU-C 402/AT-C 320
Service Organizations
Transactions processed by service orga_________
payroll processing) (AU-C 402/AT-C 320
Service Organizations
Transactions processed by service organization
payroll processing) (AU-C 402/AT-C 320
Service Organizations
Transactions processed by service organization
pay____ processing) (AU-C 402/AT-C 320
Service Organizations
Transactions processed by service organization
payroll processing) (AU-C 402/AT-C 320
Service Organizations
Transactions processed by service organization
payroll pro____ing) (AU-C 402/AT-C 320
Service Organizations
Transactions processed by service organization
payroll processing) (AU-C 402/AT-C 320
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Test of Co_____ in place at client.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Test of Control in place at client.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Test of Control in pl___ at client.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Test of Control in place at client.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Test of Control in place at cl____.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Test of Control in place at client.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• T__t of Control in place at client.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
• Test of Control in place at client.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- Test of Control in place at client.
- T__t of Control in place at service organization by another auditor.
Service Organizations
Transactions processed by service organization
(payroll processing) (AU-C 402/AT-C 320)
- Test of Control in place at client.
- Test of Control in place at service organization by another auditor.
