What is User auditor?
In short
A user auditor audits the financial statements of a user entity that relies on a service organization, such as a payroll processor. The user auditor needs to understand the services and the related controls.
Key takeaways
- A Type 1 report helps the user auditor understand controls; a Type 2 report is needed to rely on them.
- The user auditor considers complementary user entity controls and any gap between the report period and year-end.
- The user auditor's report doesn't refer to the service auditor's report.
Where it's tested
AUD: Attestation & System and Organization Controls (SOC) Engagements — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A user auditor wants to rely on controls at a service organization for the entire audit period. Which report provides appropriate evidence?