Reporting on Controls at a Service Organization

Current Status Next Steps

Project proposal approved.

Second half of 2017 – Issues to be identified.

OBJECTIVE AND SCOPE OF THIS PROJECT

The objective of this project is to update Canadian Standard on Assurance Engagements (CSAE) 3416, Reporting on Controls at a Service Organization, which was issued in 2010. 

(Read more)

At that time, feedback from Canadian stakeholders indicated that the marketplace for these engagement types is highly integrated between Canada and the United States. A decision was made to align the Canadian and equivalent American Institute of Certified Public Accountants’ attestation standards.  Recent anecdotal evidence indicates that alignment between Canada and the United States is still desired.
The project will consider alignment with:

  • the new attestation standard AT-C Section 320, which is effective for service auditor’s reports dated on or after May 1, 2017;
  • the International Standard on Assurance Engagements 3402, Assurance Reports on Controls at a Service Organization; and
  • the umbrella standard CSAE 3000, Attestation Engagements Other than Audits or Reviews of Historical Financial Information.  

(Hide)


PROJECT NEWS & DECISION SUMMARIES

AASB Decision Summary – November 28-29, 2016
The AASB unanimously approved a project proposal to revise CSAE 3416, Reporting on Controls at a Service Organization, in light of the American Institute of Certified Public Accountants’ new attestation standard AT-C Section 320, Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting.  The AASB discussed:

  • issuing an interim communication outlining key differences between CSAE 3416, AT-C Section 320 and ISAE 3402, Assurance Reports on Controls at a Service Organization; and
  • the need for input from practitioners with expertise in these standards on this project.

AASB Decision Summary – October 17-18, 2016
The AASB considered a project to revise CSAE 3416, Reporting on Controls at a Service Organization, in light of the American Institute of Certified Public Accountants’ new attestation standard AT-C Section 320, Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting, and discussed:

  • the need to better understand the differences between CSAE 3416, AT-C Section 320 and ISAE 3402, Assurance Reports on Controls at a Service Organization; and
  • whether there is a need for interim guidance on the implications for service auditors and users of service auditor’ reports of the differences.

The AASB plans to consider the draft guidance and a project proposal at its next meeting.

 

Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.