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ISC > S4-m2 > Flashcards

S4-m2 Flashcards

1
Q

When forming the opinion, the service auditor should evaluate…

A
  • the sufficiency and appropriateness of the evidence obtained
  • whether uncorrected misstatements, individually or in the aggregate are material
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2
Q

The opinion of the service auditor should focus on…

A

-fair presentation of managements description of the service organizations system
-the suitability of the design of the controls related to the control objectives stated in managements description
-The effective operation of the controls stated in managements description (Type 2 only)

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3
Q

In a SOC 1 engagement the service auditor forms an opinion regarding…

A

the controls at a service organization relevant to the user entities internal control over financial reporting

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4
Q

In a SOC 2 engagement the service auditor forms an opinion regarding…

A

the controls at a service organization relevant to one or more of the five trust service criteria.

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5
Q

The service auditor reaches his or her opinion by determining whether…

A

-the description of the controls is presented fairly by management
-the controls are designed effectively
-the controls operate as intended over a specified period of time (Type 2 only)

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6
Q

The opinions of the service auditor depend on the facts and circumstances of the evidence gathered throughout the engagement and may include…

A

-unqualified opinion
-qualified opinion
-adverse opinion
-disclaimer of an opinion

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7
Q

An unmodified opinion is the service auditors opinion that, in all material respects, based on the criteria described in managements assertion:

A
  1. Managements description of the system fairly presents the system that was designed and implemented
  2. The controls stated in managements description of the system were suitably designed
  3. the controls stated in managements description of the system operated effectively
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8
Q

Unmodified Opinion

  1. Managements description of the system fairly presents the system that was designed and implemented

SOC 1

A

Managements description of the service organization system FAIRLY presents the service organizations system that was designed and implemented as of a specified date Type 1 or throughout a period Type 2

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9
Q

Unmodified Opinion

  1. Managements description of the system fairly presents the system that was designed and implemented

SOC 2

A

Managements description of the service organizations system presents the service organizations system that was designed and implemented in ACCORDANCE WITH THE DESCRIPTION CIRTIERIA, as of a specified data Type 1 or throughout the period Type 2

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10
Q

Unmodified Opinion

  1. The controls stated in managements description of the system were suitably designed

SOC 1

A

The controls related to the control objectives statement in managements description of the service organizations system were suitably designed to achieve the control objectives as of the specified date T1 or throughout the period T2

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11
Q

Unmodified Opinion

  1. The controls stated in managements description of the system were suitably designed

SOC 2

A

The controls stated in managements description were suitably designed to provide reasonable assurance that the service organizations service commitments and system requirements were achieved based on the applicable trust services criteria as of the specified date T1 or throughout the period T2

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12
Q

Unmodified Opinion

  1. the controls stated in managements description of the system operated effectively

SOC 1

A

The controls related to the control objectives stated in managements description of the system operated effectively throughout the specified period to achieve the control objectives

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13
Q

v

  1. the controls stated in managements description of the system operated effectively

SOC 2

A

The controls stated in managements description of the system operated effectively throughout the specified period to provide reasonable assurance that the service organizations service commitments and system requirements were achieved based on the applicable trust services criteria

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14
Q

When is the service auditor required to modify the opinion?

A

When the service auditors professional judgment that the effect of the matter is or may be material:
-the service auditor is unable to obtain sufficient appropriate evidence to conclude that the subject matter is in accordance with the criteria in all material respects
-the service auditor concludes, based on evidence obtained, that the subject matter is not in accordance with the criteria, in all material respects

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15
Q

Opinion should be modified if the service auditor concludes:

SOC 1

A

-Managements description of the service organization system is not fairly presented in all material respects
-Controls are not suitably designed to provide reasonable assurance that the control objectives stated in managements description of the service organizations system would be achieved if the controls operated effectively
-Controls did not operate effectively throughout the specified period to achieve related control objectives stated in managements description
-unable to obtain sufficient and appropriate evidence

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16
Q

Opinion should be modified if the service auditor concludes:

SOC 2

A

-Managements description of the service org system does not present the system designed and implemented throughout the period in accordance with the description criteria
-The controls are not suitably designed to provide reasonable assurance that the SERVICE ORGANIZATIONS service commitments and system requirements would be achieved based on the applicable TRUST SERVICE CRITERIA if the controls operated effectively
-unable to obtain sufficient and appropriate evidence

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17
Q

Qualified Opinion

A

states that EXCEPT FOR the effects of the matters giving rise to the modification, the description is presented in accordance with he description criteria and the controls were suitable designed and operating effectively

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18
Q

Adverse Opinion

A

States that the description misstatements, either individually or in aggregate, are material and pervasive ,or deficiencies in the design or operation of controls are materially pervasive

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19
Q

Disclaimer of Opinion

A

Auditor does not express an opinion

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20
Q

Key Components of a SOC Report

A
  1. Managements description of the system
  2. Managements assertion
  3. Independent auditors report
  4. Auditors tests of controls and results of tests
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21
Q

A SOC 1 engagement is an examination to report on…

A

a service organizations controls relevant to user entities internal control over financial reporting

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22
Q

The service organizations management is responsible for…

SOC 1

A

documenting the description of the service organizations system.

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23
Q

The description must provide…

SOC 1

A

sufficient information to allow a user auditor to understand how the service organizations processing affects the user entity’s financial statements and to assess the risk of material misstatement.

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24
Q

Types of services provided

Common Sections of a system Description SOC 1

A

defined scope of services provided and the classes of transactions processed

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25
Q

Procedures performed

Common Sections of a system Description SOC 1

A

Procedures within both manual and automated systems, by which services are provided, including procedures to initiate, authorize, record, process, correct and transfer transactions to reports and other information for user entities

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26
Q

System Functionality

Common Sections of a system Description SOC 1

A

How the system captures and addresses significant events and conditions (other than transactions)

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27
Q

Subservice Organizations

Common Sections of a system Description SOC 1

A

services performed by entities the service organization uses to provide services to the user entity, including whether the carve-out method or the inclusive method has been used, and any complementary subservice organizational controls necessary to meet control objectives

28
Q

Controls

Common Sections of a system Description SOC 1

A

a description of the control objective and design to achieve those objectives, including the frequency, timing , person or parties responsible for performance, and the source of information to which the control is applied

29
Q

Information on Other Aspects of the Control Environment

Common Sections of a system Description SOC 1

A

information on other aspects of the control environment, risk assessment process, information and communication, control activities, and monitoring activities that are relevant to the service provided.

30
Q

Prepare Reports

Common Sections of a system Description SOC 1

A

Processes to prepare reports and other information for user entities

31
Q

Deficiencies in Information

Common Sections of a system Description SOC 1

A

if applicable, info used in the performance of the procedures to initiative, authorize, record, process, and report transactions. Includes the correction of incorrect info and how info is transferred to the report

32
Q

Complementary User entity Controls (CUECs)

Common Sections of a system Description SOC 1

A

Controls that must be implemented by the user entity to meet control objetives

33
Q

Relevant details…

Common Sections of a system Description SOC 1

A

of changes to the service organizations system during the period covered by the description (T2 only)

34
Q

The description does not…

Common Sections of a system Description SOC 1

A

omit or distort information relevant to the system and is prepared to meet the common needs of a broad range of user entities and their auditors, and thus may not include every aspect that a user entity may consider important in its own particular environment

35
Q

A SOC 2 engagement is an examination of…

A

a service organizations description of its system, the suitability of the design of controls, and in a T2 engagement, the operating effectiveness of controls relevant to security, availability, processing integrity, confidentiality, and privacy.

36
Q

The service organizations management is responsible for…

SOC 2

A

presenting a description of the system to enable report users, such as user entities, business partners, or other relevant parties, to understand the system and the processing and flow of data throughout and from the system.

37
Q

Types of services provided

Common Sections of a system Description SOC 2

A
38
Q

Principal service commitments and system requirments

Common Sections of a system Description SOC 1

A

the commitments made to user entities and the system requirments required to achieve such commitments

39
Q

Service Commitments

Pricipal service commitments

A

declarations made by service organizations managemetn to suer entites and others about the sytem used to provide the service

40
Q

System Requirements

Principal system requiremnts

A

Specifications regarding how the system should function to meet the service organizations service commitments to user entities and others, to meet the service organizations commitments to vendors and business partners to comply with laws and regulations

41
Q

Components of the system used to provide services

Common Sections of a system Description SOC 2

A

infrastructure, software, people, data, procedures

42
Q

Indentified system incidents

Common Sections of a system Description SOC 2

A

incidents that were the result of controls that were not suitably designed or operating effectively or that resulted in a significant failure in the achievement f one or more service commitments and system requirement

43
Q

Applicable trust services criteria

Common Sections of a system Description SOC 2

A

the trust services criteria being reporting on, including applicable controls in place to provide reasonable assurance that the service commitments and system requirements were achieved

44
Q

Complementary user entity controls (CUECs)

Common Sections of a system Description SOC 2

A

The controls implemented by the user entity that are necessary, in combination with controls at the service organization, to provide reasonable assurance that the service commitments and system requirements would be achieved

45
Q

Subservice oragnizations

Common Sections of a system Description SOC 2

A

a subservice organization used by the service organization and the controls at the subservice organization are necessary, in combination with controls at the service organization, to provide reasonable assurance that the service commitments and system requirements would be achieved

46
Q

Inclusive method

Subservice oragnizations

A

nature of the service provided, controls, portions of the system attributable tot he subservice organization along with relevant aspects infrastructure, software

47
Q

Carve-out method

Subservice oragnizations

A

nature of the service provided, types of controls along with the applicable trust service criteria that are intended to be met by the complementary subservice

48
Q

Irrelevanat specific criteria

Common Sections of a system Description SOC 2

A

Explanations for why specific trust services criteria are not relevant for the service organizations system

49
Q

**

An entity’s cybersecurity risk management program is a set of policies, processes, and controls designed to:

A
  • protect info and systems from security events that could compromise the achievement of the entity’s cybersecurity objectives and
    -direct, respond to, mitigate, and recover from, on a timely basis, security events that are not prevented
50
Q

Categories of description criteria include

A
  1. Nature of business and operations
  2. Nature of information at risk
  3. CS risk management program objectives
  4. Factors that have a significant effect on inherent CS risks
  5. CS risk governance structure
  6. CS communications and the quality of CS info
  7. Monitoring of the CS risk management program
  8. CS control processes
51
Q

In a SOC 1 and SOC 2 engagement, managements assertion addresses whether:

A
  1. Managements description of the system fairly presents the system that was designed and implemented
  2. The controls state in managements description of the system were suitably designed
  3. The controls stated in managements description of the system operated effectively
52
Q

In a SOC 3 engagement, managements assertion addresses whether

A

the controls within the system were effective throughout the specified period to provide reasonable assurance that the service organization service commitments and system requirements were achieved based on the applicable trust services criteria, including a description of the boundaries of the system and the service orgs principal service commitments and system requirements

53
Q

The SOC report includes:

A
  1. Managements description of the system
  2. Managements assertion
  3. Independent service auditors report
  4. Auditors tests of controls and results
54
Q
  1. Managements description of the system

SOC 1

A

Managements description of the system as of a specified date T1 or throughout the period T2

55
Q
  1. Managements assertion

SOC 1

A

Addresses whether, based on the criteria in a managements assertion:
-management’s description of the service organizations system fairly presents the service organizations system that was designed and implemented
-controls related to the control objectives stated in managements description of the service organizations system were suitably designed to achieve those control objective
-controls were operating effectively

56
Q
  1. Independent service auditors report

SOC 1

A

service auditors opinion about whether:
-managements description of the service organizations system fairly presents the service organizations system that was designed and implemented as of a specified date T1
-Controls related to control objectives were suitably designed to achieve objectives
-controls related to the control objectives operated effectively

57
Q
  1. Auditors tests of controls and results

SOC 1

A

Description of the service auditors test of controls and results thereof T2 only

58
Q

SOC Report Elements:

A

-Title
-Addressee
-Scope
-Service Orgs responsibilities
-Service Auditors responsibilities
-inherent limitations
-Description of Tests of Controls (T2 only)
-Other Matter (T1 Only)
-Opinion
-Restricted Use
-Service Auditor signature
-Service auditor city and state
-Date of the Service auditor report

59
Q

Key differences between SOC 1 Type 1 and Type 2 Reports?

A

In a type 2 report there is addition of expanded language to include operating effectiveness
-The reference to the description of the service auditors tests of controls and related results

60
Q
  1. Managements description of the system

SOC 2

A

Managements description of the system as of a point in time (T1) or throughout a period of time (T2)

61
Q

Managements Assertion addresses whether:

SOC 2

A

-description of the service organizations system as of a point in time (T1) or throughout a period of time (T2)
-Controls stated in description were suitably designed as of a point in time or throughout a period (T2) to provide reasonable assurance that the service orgs service commitments and system requirements were achieved
-controls stated in description operated effectively throughout a period of time to provide reasonable assurance that the service orgs service commitments and system requirements were achieved based on the applicable trust services criteria T2 only

62
Q

Independent Auditors Report opinion about whether:

A

-Description of the service organization system as of a point in time (T1) or throughout (T2) is presented in accordance with the description criteria
-controls stated were suitably designed to provide reasonable assurance that the service organizations service commitments and system requirements were achieved based on the applicable trust services
-controls stated in description operated effectively throughout a period of time to provide reasonable assurance that the service organizations service commitments and system requirements were achieved based on the applicable trusts service criteria (T2 only)

63
Q

Auditors Tests of Controls and Results of Tests

SOC 2

A

Description of the service auditors tests of controls and results thereof (T2 only)

64
Q

Key Differences Between SOC 2 Type 1 and Type 2

A

When performing a type 1 engagement, all references to the operating effectiveness of controls are EXCLUDED
-Type 1 does not include a description of the service auditors tests of controls

65
Q

A SOC 2 report for a Type 2 engagement should contain…

A

a reference tot the description of the service auditors tests of controls and the results of such tests

66
Q

Information required to be described includes:

Describing tests of controls and results SOC 2

A

-controls that were tested
-Whether the items tested represent all, or a section of , the items in the population
-the nature of the tests performed in sufficient detail to enable users to determine the effect of such tests

67
Q

If deviations were identified, the following info would be also included:

Describing tests of controls and results SOC 2

A
  • number of items tested
    -number and nature of deviations
    -causative factors (optional)

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