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When an audit client uses a service organization to manage their investment activity,

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When an audit client uses a service organization to manage their investment activity,

When an audit client uses a service organization to manage their investment activity,

▸ the auditor can always rely on the internal controls of the service organization.

▸ the auditor must state in their audit opinion that the client uses a service organization.

▸ the auditor can rely on the internal controls of the service organization if the service organization's auditor issues a report on their internal control.

▸ the auditor must rely on the service organization to determine the fair level 1, 2, and 3 estimates.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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Thanks for your help!!

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