ISA 402 — Audit Considerations Relating to an Entity Using a Service Organisation
ISA 402 is an international pronouncement addressing audit considerations where a user entity uses a service organisation. It addresses the user auditor’s work where a user entity uses a service organisation. The auditor obtains an understanding of relevant services and controls and evaluates the evidence needed; a service-auditor report may assist but does not transfer responsibility for the user audit opinion.
Worked example
A user auditor evaluates evidence about outsourced payroll processing and complementary user controls.
Common mistake
A service auditor’s report does not automatically cover every service, control or period relevant to the user entity.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |
