Audit Considerations relating to an Entity using a Service Organisation Flashcards
What do many companies now do with payroll?
Outsource some aspects of their business activities to external service organisations
What is a service organisation?
A third-party organisation that provides services to user entities that one part of those entities’ information systems relevant to finanical reporting
What is a user entity?
An entity that uses a service organisation and whose financial statements are being audited
What is a user auditor?
An auditor who audits and reports on FSs of a user entity
What is a service auditor?
An auditor who when requested by service organisation, provides an assurance report on the controls of a service organisation
Other examples of where service organisations may be used?
The maintenance of accounting records, credit control and data entry or information processing
What does ISA 402 provide?
Considertations relating to an entity using a service organisation
