Service auditor
A service auditor is an auditor who reports, at the request of the service organisation, on controls at that organisation. A type 1 report addresses the description and control design at a specified date; a type 2 report also addresses operating effectiveness over a specified period.
Worked example
A payroll provider engages an independent auditor to report on controls over processing payroll for its customers.
Common mistake
Do not assume a type 1 report tests operating effectiveness throughout a period.
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 |