IRBA Inspections Article - Clients’ Use of Service organisations

This article examines the audit complexities introduced when user entities rely on service organisations, detailing mandatory audit requirements and common inspection observations. Primarily, regulators observe two main deficiencies: auditors failing to recognize the involvement of service organisations, and auditors relying on these organisations' controls without obtaining sufficient corroborating evidence. The article is covered on pages 24 to 27 of IRBA News Issue 73.