Apart from helping the service organization in the preparation of the details of disclosures in respect of internal controls being practiced at the organization which usually include all the aspects of the service organization's internal control environment; processes used for risk assessment; communication and information control processes; and monitoring of those processes which may directly affect the services provided to the customer organizations, as far as it relates to the audit of their financial statements. The auditor must include the internal control objectives and whether these objectives have been achieved at all. The service auditor must also report of certain user organizations specific controls in vogue at the service organization; however such information must be provided by the service organization for inclusion in the report.
A lot of information is provided by the Service Auditor in the description of the tests conducted on the operational effectiveness and adequacy of internal controls and details of the results of such tests. The details must contain descriptions of the controls that were tested; what were the objectives that the control was supposed to achieve; and finally the details of the test conducted including time, methodology, extent and the results of such tests which have enabled the service auditor to form his opinion on the effectiveness and adequacy of the control under test. The auditor may also provide at his discretion his recommendations for improvement of the controls examined in this part of the report.
The audit report may or may not include other information which may be provided by the service organizations for use of the user organizations’ auditors. The service organization may provide and request the service auditor such information though not a part of controls by which are relevant to the understanding of the internal controls descriptions by the user organizations’ auditors.
Apart from helping the service organization in the preparation of the details of disclosures in respect of internal controls being practiced at the organization which usually include all the aspects of the service organization's internal control environment; processes used for risk assessment; communication and information control processes; and monitoring of those processes which may directly affect the services provided to the customer organizations, as far as it relates to the audit of their ...
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Roberto Garabell
