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Service organizations provide services ranging from performing a specific task under the direction of a company to replacing entire business units or functions of that company. Many companies use service organizations to accomplish tasks that affect the company's financial statements. In recent years, there has been a significant increase in the use of service organizations.
Because many of the service organizations' functions affect a company's financial statement, auditors auditing the company's financial statements may need information about those services, the related service organization's controls, and their effects on the company's financial statements.
This Audit Guide is designed to provide guidance to auditors reporting on a service organization's controls. It also provides guidance to auditors of companies that use service organizations. This guide has been revised to reflect:
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