AT-C 320 Reporting on an Examination of Controls at a Service Organization Relevant to User Entities' Internal Control over Financial Reporting
Original Pronouncement
| Source | Statement on Standards for Attestation Engagements (SSAE) 18. |
Applicability
AT-C 320 applies to examination engagements to report on controls at organizations that provide services to user entities when those controls are likely to be relevant to user entities' internal control over financial reporting. (AT-C 320.01)
For Section 320, CPAs must comply with Section 105 and Section 205 on examination engagements. (AT-C 320.02) See the chapter on the AT-C Preface for more information about the AT-C section structure.
Section 320 does not address engagements to examine or apply agreed-upon procedures to a user entity's transactions or balances maintained by a service organization or agreed-upon procedures engagements related to controls of a service organization.
Definitions of Terms
See the glossary in the Appendix to the chapter on the AT-C Preface for definitions of the following terms relevant to this Section: carve-out method, complementary user entity controls, control objectives, controls at a service organization, inclusive method, internal audit function, management's description of a service organization's system and a service auditor's report on that description and on the suitability of the design of controls (referred to in this section as a type 1 report), management's description of ...