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CAS 402, Audit Considerations Relating to an Entity using a Service Organization

Ef­fec­tive date:

Effective for audits of financial statements for periods ending on or after December 14, 2010

[Canadian Auditing Standard (CAS) 402, Audit Considerations Relating to an Entity Using a Service Organization, should be read in conjunction with CAS 200Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Canadian Auditing Standards.]

Overview

This Canadian Auditing Standard (CAS) deals with the user 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 CAS 315, Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment , and CAS 330, The Auditor’s Responses to Assessed Risks, 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.

The objectives of the user auditor, when the user entity uses the services of a service organization, are: (a) to obtain an understanding of the nature and significance of the services provided by the service organization and their effect on the user entity's internal control relevant to the audit, sufficient to identify and assess the risks of material misstatement; and (b) to design and perform audit procedures responsive to those risks.

History of CAS 402

There have been no amendments to CAS 402 since its date of issue.

Note: Our history summary does not take into account consequential amendments made as the result of other projects.

Amend­ments un­der con­sid­er­a­tion

  • None

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.