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Audit Considerations Relating To Entities Using Service Organizations (PSA402 Revised and Redrafted)
Audit Considerations Relating To Entities Using Service Organizations (PSA402 Revised and Redrafted)
and Redrafted)
Objective:
❖ To obtain an understanding of the nature and significance of the services provided by the
service organization and their effect on the user entity's internal control.
Requirements:
Using Type 1 or Type 2 report to support the user Auditor’s understanding of the service
organization
❖ Type 1 report
➢ Description by management
■ Service organizations system, control objectives and related controls
■ Designed and implemented
➢ Report by service auditor
■ Auditor’s opinion on description
❖ Type 2 report
➢ Description by management
■ Type 1 + Operating effectiveness through the period
➢ Report by service auditor
■ Auditor’s opinion on description
■ Description of service auditor’s TOC and results