Go to the PCAOB website and access Interim Standards, AU 324, Reports on the Processing of Transactions by Service Organizations. The standard covers important aspects of when and how an auditor should consider the transactions by service organizations.
a. According to AU 324.02, what is the difference between the user auditor and the service auditor?
b. According to AU 324.03, what characteristics define a service organization’s services as part of the user organization’s information system?
c. According to AU 324.14, what should the user auditor consider when deciding to use a service auditor’s report?
d. According to AU 324.14, who is ultimately responsible to the client for the content and reliance on a SAS 70 report?
e. According to AU 324.24, what are the two types of engagements and reports?