Page 381 - Auditing Standards

As of December 15, 2017

Footnotes (AS 2601 - Consideration of an Entity's Use of a Service Organization):

1 In this section, a service organization's controls that may be relevant to a user organization's internal
control as it relates to an audit of financial statements will be referred to as a service organization's controls.

2 See AT section 201, Agreed-Upon Procedures Engagements, for guidance on performing and reporting on
agreed-upon procedures engagements.

3 If the application of controls by user organizations is necessary to achieve the stated control objectives, the
service auditor's report should be modified to include the phrase "and user organizations applied the controls
contemplated in the design of XYZ Service Organization's controls" following the words "complied with

satisfactorily" in the scope and opinion paragraphs.

4 If the application of controls by user organizations is necessary to achieve the stated control objectives, the
service auditor's report should be modified to include the phrase "and user organizations applied the controls
contemplated in the design of XYZ Service Organization's controls" following the words "complied with

satisfactorily" in the scope and opinion paragraphs.

5 This sentence should be added when all of the control objectives listed in the description of controls placed
in operation are not covered by the tests of operating effectiveness. This sentence would be omitted when all of
the control objectives listed in the description of controls placed in operation are included in the tests of operating
effectiveness.

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