Reports on service organizations typically
A) Provide reasonable assurance that their financial statements are free of material misstatements.
B) Ensure that the entity will not have any misstatements in areas related to the service organization's activities.
C) Ensure that the auditee 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 typically assess whether the service organization's controls are suitably designed to achieve internal control objectives. These reports, known as Service Organization Control (SOC) reports, are prepared by the service organization's auditor and provide information on the effectiveness of the service organization's controls over its information systems, operations, or financial reporting. SOC reports do not provide assurance on the accuracy of the auditee's financial statements or billing.

Reports on Service Organizations Typically