service organisation

Which of the following is a type of service auditor's report?

• A.Type 1 Report
• B.Type 2 Report
• C.Type 3 Report
• D.Both (A) and (B)

Which party typically requests a service auditor's engagement?

• A.Service organisation
• B.Service auditor
• C.User Entity
• D. Regulatory Authority

What is the primary objective of a service auditor's engagement?

• A. To provide assurance on controls at the service organization
• B. To provide assurance on financial statements of the service organization.
• C. To provide assurance on internal audit functions.
• D. To provide assurance on IT systems of the service organization.

Which of the following is NOT a component of a Type 2 service auditor's report?

• A. Management's description of the service organization's system.
• B. Service auditor's opinion on the fairness of the financial statements.
• C. Service auditor's opinion on the suitability of design of controls.
• D. Service auditor's opinion on the operating effectiveness of controls.

Which of the following is a limitation of a service auditor's report?

• A. It provides absolute assurance on the effectiveness of controls.
• B. It may not identify all deficiencies in the service organization's controls.
• C. It replaces the need for user entities to perform their own assessments.
• D. All of the above

Which of the following is NOT a consideration when evaluating a service auditor's report?

• A. The type of opinion expressed by the service auditor.
• B. The qualifications of the service auditor.
• C. The compensation paid to the service organization.
• D. The relevance of the control objectives to the user entity's operations.

Which of the following is NOT a requirement for a service auditor's report?

• A. It must include the service organization's marketing strategies.
• B. It must be based on an examination of the service organization's controls.
• C. Both (A) and (B)
• D. None of the above

What is the scope of Type 1 report?

• A. Report on the description and design of controls at service organisation.
• B. Report on the reliability of IT systems.
• C. Report on the service organization's financial statements.
• D. All of the above

What is the scope of Type 2 report?

• A. Report on the description, design and operating effectiveness of controls at service organisation.
• B. Report on the reliability of IT systems.
• C. Both (A) and (B)
• D. None of the above

Which of the following are examples of service organizations?

• A. Trust departments of banks and insurance companies that invest assets.
• B. Mortgage servicers or depository institutions that service loans for others.
• C. Organizations that process payroll and payroll taxes.
• D. All of the above