Document ID: chunk:federal_register_of_legislation:F2023C01156:reg:14:p7
Version: federal_register_of_legislation:F2023C01156
Segment Type: reg
Provision Reference: reg 14 (pt 7/22)
Character Range: 24345–27325

audit evidence about the effectiveness of the controls to support the user auditor's risk assessment by:

(a)                Evaluating whether the description, design and operating effectiveness of controls at the service organisation is at a date or for a period that is appropriate for the user auditor's purposes;

(b)                Determining whether complementary user entity controls identified by the service organisation are relevant to the user entity and, if so, obtaining an understanding of whether the user entity has designed and implemented such controls and, if so, testing their operating effectiveness;

(c)                Evaluating the adequacy of the time period covered by the tests of controls and the time elapsed since the performance of the tests of controls; and

(d)                Evaluating whether the tests of controls performed by the service auditor and the results thereof, as described in the service auditor's report, are relevant to the assertions in the user entity's financial report and provide sufficient appropriate audit evidence to support the user auditor's risk assessment.  (Ref: Para. A31‑A39)

Type 1 and Type 2 Reports that Exclude the Services of a Subservice Organisation

18.               If the user auditor plans to use a type 1 or a type 2 report that excludes the services provided by a subservice organisation and those services are relevant to the audit of the user entity's financial report, the user auditor shall apply the requirements of this Auditing Standard with respect to the services provided by the subservice organisation.  (Ref: Para. A40)

Fraud, Non‑Compliance with Laws and Regulations and Uncorrected Misstatements in Relation to Activities at the Service Organisation

19.               The user auditor shall enquire of management of the user entity whether the service organisation has reported to the user entity, or whether the user entity is otherwise aware of, any fraud, non‑compliance with laws and regulations or uncorrected misstatements affecting the financial report of the user entity.  The user auditor shall evaluate how such matters affect the nature, timing and extent of the user auditor's further audit procedures, including the effect on the user auditor's conclusions and user auditor's report.  (Ref: Para. A41)

Reporting by the User Auditor

20.               The user auditor shall modify the opinion in the user auditor's report in accordance with ASA 705[6] if the user auditor is unable to obtain sufficient appropriate audit evidence regarding the services provided by the service organisation relevant to the audit of the user entity's financial report.  (Ref: Para. A42)

21.               The user auditor shall not refer to the work of a service auditor in the user auditor's report containing an unmodified opinion unless required by law or regulation to do so.  If such reference is required by law or regulation, the user auditor's report shall indicate that the