31386 paragraphs found
A user entity may use a service organisation such as one that processes transactions and maintains related accountability, or records transactions and processes related data. Service organisations that provide such services include, for example, bank …
Examples of service organisation services that are relevant to the audit include: Maintenance of the user entity’s accounting records. Management of assets. Initiating, recording or processing transactions as agent of the user …
Smaller entities may use external bookkeeping services ranging from the processing of certain transactions (for example, payment of payroll taxes) and maintenance of their accounting records, to the preparation of their financial report. The use of such …
Nature and Materiality of Transactions Processed by the Service Organisation (Ref: Para. 9(b) ) …
A service organisation may establish policies and procedures that affect the user entity’s internal control. These policies and procedures are at least in part physically and operationally separate from the user entity. The significance of the controls …
The Degree of Interaction between the Activities of the Service Organisation and the User Entity (Ref: Para. 9(c) ) …
The significance of the controls of the service organisation to those of the user entity also depends on the degree of interaction between its activities and those of the user entity. The degree of interaction refers to the extent to which a user entity …
Nature of the Relationship between the User Entity and the Service Organisation (Ref: Para. 9(d) ) …
The contract or service level agreement between the user entity and the service organisation may provide for matters such as: The information to be provided to the user entity and responsibilities for initiating transactions relating to the activities …