Using service organisations

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Clients won't always perform all of their operations ‘in house’

Operations such as payroll or cleaning services may be outsourced to other providers

Is this a good thing for the audit?

  • It may provide additional independence to the information generated

  • It makes it more reliable due to the specialist nature of the outsourcing

  • May therefore cut down on work required to audit it

Why is it maybe a bad thing also?

  • The outsourcing firms’ reliability

  • More difficult to get evidence from them

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