[Deleted by the AUASB.  Refer Aus A16.1]. [8] …

A service organisation may engage a service auditor to report on the description and design of its controls (type 1 report) or on the description and design of its controls and their operating effectiveness (type 2 …

The availability of a type 1 or type 2 report will generally depend on whether the contract between a service organisation and a user entity includes the provision of such a report by the service organisation.  A service organisation may also elect, for …

In some circumstances, a user entity may outsource one or more significant business units or functions, such as its entire tax planning and compliance functions, or finance and accounting or the control function to one or more service organisations.  As a …

Another auditor may be used to perform procedures that will provide the necessary information about the relevant controls at the service organisation.  If a type 1 or type 2 report has been issued, the user auditor may use the service auditor to perform …

A user entity may use a service organisation that in turn uses a subservice organisation to provide some of the services provided to a user entity that are part of the user entity’s information system relevant to financial reporting.  The subservice …

Using a Type 1 or Type 2 Report to Support the User Auditor’s Understanding of the Service Organisation (Ref: Para.  13‑14 ) …

The user auditor may make enquiries about the service auditor to the service auditor’s professional organisation or other practitioners and enquire whether the service auditor is subject to regulatory oversight.  The service auditor may be practicing in a …

​​​​​A type 1 or type 2 report, along with information about the user entity, may assist the user auditor in obtaining an understanding of: The aspects of controls at the service organisation that may affect the processing of the user entity’s …

A type 1 or type 2 report that is as of a date or for a period that is outside of the reporting period of a user entity may assist the user auditor in obtaining a preliminary understanding of the controls implemented at the service organisation if the …