Service organisation
A service organisation provides services to user entities that may be relevant to their information systems and financial reporting controls. The user auditor considers the nature of the services, related controls and evidence needed, including relevant service-auditor reports when available.
Worked example
A company outsources payroll processing; the user auditor evaluates the payroll service and relevant controls.
Common mistake
A service auditor’s report does not automatically cover every user-entity control or every period.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |