Will user Auditor check operating effectiveness in SA 402 in Type 2 report or just rely on it

2 answers

Ravi Staff February 13, 2018

if user auditor is satisfied with quality of report then he can use it for getting assurance over controls (test of controls) no need to perform more tests
may changing depending on circumstances , quality of report and its coverage

#1
Ravi Staff February 13, 2018

Below is para from  SA 402 (Which clearly says Type 2 Report is one of the source of evidence for test of controls)
When the user auditor’s risk assessment includes an expectation that controls at the service organisation are operating effectively, the user auditor shall obtain audit evidence about the operating effectiveness of those controls from one or more of the following procedures:
(a) Obtaining a Type 2 report, if available;
(b) Performing appropriate tests of controls at the service organisation; or
(c) Using another auditor to perform tests of controls at the service
organisation on behalf of the user auditor.

#2

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