ACCA AA Syllabus D. Audit Evidence - Using service organisations - Notes ^{3 / 3}

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