Reports on service organizations typically
A) Provide reasonable assurance that their financial statements are free of material misstatements.
B) Ensure that the client will not have any misstatements in areas related to the service organization's activities.
C) Ensure that the client is billed correctly.
D) Assess whether the service organization's controls are suitably designed to achieve internal control objectives.

Question

Quizplus · Accepted Answer

Reports on service organizations, also known as SOC reports, assess the design and effectiveness of the service organization's controls in achieving internal control objectives. These reports do not provide assurance on financial statements or billing accuracy, and they do not address misstatements outside of the service organization's activities.

Reports on Service Organizations Typically