Service Organizations

Free CPA AUD (Auditing & Attestation) lesson in Assessing Risk and Developing a Planned Response. 16 min read, ~2,465 words.

The user auditor remains responsible for the audit opinion even when controls live at a service organization (AU-C 402); outsourcing the process does not outsource the audit. SOC 1 Type 1 covers design at a point in time; Type 2 covers design AND operating effectiveness over a period (typically 6-12...