Organizations that provide services that impact their customers’ financial reporting processes are often subject to audits of these processes executed on behalf of their customers. The Auditor’s Report on Controls at a Service Organization, Section 5970 has long been the governing standard in Canada for performing these audits, and giving the service organization a mechanism for providing an independent audit report to their customers and their customers’ auditors. The requirements and guidance for Canadian auditors reporting under Section 5970 will be superseded by a new Canadian Standard on Assurance Engagements (CSAE 3416).
This paper focuses on the changes from the Section 5970 standard to the new CSAE 3416 standard, including comments on the impact of those updates on service organizations and service auditors.
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