Page 219 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
stated in that description and, in the case of a type 2 report, on the operating effectiveness of those controls, based
on the service auditor’s procedures.
6A. Engagement Accordance with SAE 3402: A statement that the engagement was performed in accordance
with SAE 3402, “Assurance Reports on Controls at a Service Organization,” which requires that the service
auditor comply with ethical requirements and plan and perform procedures to
6B. Obtaining Reasonable Assurance: obtain reasonable assurance about whether, in all material respects, the
service organization’s description of its system is fairly presented, and the controls are suitably designed and, in
the case of a type 2 report, are operating effectively.
6C. Summary of Service Auditor’s Procedures: A summary of the service auditor’s procedures to obtain
reasonable assurance and a statement of the service auditor’s belief that the evidence obtained is sufficient and
appropriate to provide a basis for the service auditor’s opinion, and, in the case of a type 1 report, a statement
that the service auditor has not performed any procedures regarding, the operating effectiveness of controls and
therefore no opinion is expressed thereon.
6D. Statement of Controls Limitations: A statement of the limitations of controls and, in the case of a type 2
report of the risk of projecting to future periods any evaluation of the operating effectiveness of controls.
7. Opinion
The service auditor’s opinion, expressed in the positive form, on whether, in all material respects, based on
suitable criteria:
8. Statement on Users of Report: A statement that the report and, in the case of a type 2 report, the description
of tests of controls are intended only for user entities and their auditors, who have a sufficient understanding to
consider it, along with other information including information about controls operated by user entities
themselves, when assessing the risks of material misstatements of user entities’ financial statements.
In the case of a type 2 report:
Fairness: The description fairly presents the service organization’s system that had been designed and
implemented throughout the specified period.
Suitability: The controls related to the control objectives stated in the service organization’s description of its
system were suitably designed throughout the specified period; and
Effectiveness: The controls tested, which were those necessary to provide reasonable assurance that the control
objectives stated in the description were achieved, operated effectively throughout the specified period.

In the case of a type 1 report:
Fairness: The description fairly presents the service organization’s system that had been designed and
implemented as at the specified date and
Suitability: The controls related to the control objectives stated in the service organization’s description of its
system were suitably designed as at the specified date.
Date: The date of the service auditor’s assurance report, which shall be no earlier than the date on which the
service auditor has obtained sufficient appropriate evidence on which to base the opinion.
Signature: The report should be signed by the practitioner.
Place: The report should name specific location, which is ordinarily the city where the report is signed.
Additional matters requiring reporting in type 2 report:
Additional Reporting in Type 2 Report: In the case of a type 2 report, the service auditor’s assurance report
shall include a separate section after the opinion, or an attachment, that describes the tests of controls that were
performed and the results of those tests.
Description of Control Tests: In describing the tests of controls, the service auditor shall clearly state which
controls were tested, identify whether the items tested represent all or a selection of the items in the population,
and indicate the nature of the tests in sufficient detail to enable user auditors to determine the effect of such tests
on their risk assessments.

www.auditguru.in 11.11