ISSAI Executive Summaries
ISSAI 1402 – Audit Considerations Relating to an Entity Using a Service Organization
This Practice Note provides supplementary guidance on ISA 402 - Audit Considerations Relating to an Entity Using a Service Organization
Level 4: General Auditing Guidelines - General Auditing Guidelines on Financial Audit
Public sector external auditors
ISA 402 deals with the auditor's responsibility to obtain sufficient appropriate audit evidence when a user entity uses the services of one or more service organizations.
Specifically, it expands on how the user auditor applies ISA 315 and 330 in obtaining an understanding of the user entity including internal control relevant to the audit, sufficient to identify and assess the risks of material misstatement and in designing and performing further audit procedures responsive to those risks.
|Scope - Content:||
The Practice Note provides additional guidance for public sector auditors related to
The Appendix of the Standard includes examples of activities and situations related to service organizations that may be relevant in a public sector context.
|Author - Committee:||
INTOSAI Professional Standards Committee – Financial Audit Subcommittee
Approved at XXth Congress of INTOSAI, Johannesburg 2010
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ISA 402 is applicable to auditors of public sector entities in their role as auditors of financial statements.
ISA 402 should be applied in combination with ISA 315 (Identifying and Assessing the Risks of Material Misstatements through Understanding the Entity and its Environment) and ISA 330 (The Auditor’s Responses to Assessed Risks).