Can a registered public accounting firm in the integrated audit of an issuer obtain evidence from a service auditors report issued by a non-registered public accounting firm?
A26. Yes. Paragraph B24 of Auditing Standard No. 2 directs the auditor to make inquiries concerning the service auditor’s reputation, competence and independence in determining whether the service auditor’s report provides sufficient evidence to support management’s assessment and the auditor’s opinion on internal control over financial reporting. Auditing Standard No. 2 does not require that the service auditor be a registered public accounting firm. The auditor should be aware of how evidence obtained from a service auditor’s report issued by a non-registered firm interacts with the Board’s registration rules. Any public accounting firm that “plays a substantial role in the preparation or furnishing of an audit report” with respect to any issuer must register with the Board. Because of the nature of the service auditor’s report (the user auditor could have performed tests of controls at the service organization himself or herself but, instead, may have chosen to obtain evidence from
Related Questions
- Can a registered public accounting firm in the integrated audit of an issuer obtain evidence from a service auditors report issued by a non-registered public accounting firm?
- Does the audit firm have to be registered with the Public Company Accounting Oversight Board (PCAOB)?
- Can a partnership be registered as a public accounting firm?
