Type 1 and type 2 service-auditor reports
A type 1 service-auditor report addresses the description and design of controls at a specified date. A type 2 report also addresses operating effectiveness over a specified period. The user auditor assesses relevance, coverage and complementary user controls before relying on the report.
Worked example
A type 2 report covers payroll processing for nine months; the auditor considers evidence needed for the remaining three months.
Common mistake
Do not treat a type 1 report as evidence that controls operated effectively throughout the 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 |