Skip to contentSkip to search

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

QualificationExamRelationshipPeriod
ACCA AA Supporting September 2026–June 2027
ACCA AAA (INT) Supporting September 2026–June 2027