[PleasePass]

Could someone please explain the auditor’s responsibility when it comes to internal control of a client when that client uses another organization (such as ADP) for their payroll? What does the auditor have to do? Does the auditor need to become aware of the internal control of the service organization? Does the auditor need to do substantive procedures? I am confused by the wording in Becker because they throw around the words “user auditor” and “service auditory” that it doesn’t make it easy! Please explain! Thanks in advance for any help!

FAR (10/15/10) = 94
AUD (11/24/10) = 89
BEC (5/20/11) = 87
REG (8/23/11) = 78

[jeff]

My AUD notes should help. Risk-free purchase if you don't think they're all that and a box of Cheerios.

https://www.another71.com/cpa-review-discounts-2/

[Anonymous]

I don't want to avoid you from buying Jeff notes or possibly getting the box of Cherrios (that he is either offering for free + a box of cheerios or he is comparing the content to the best box of cheerios).. either way it cracks me up. lol

Service company processes a service for a company, for example ADP, process's companies payroll. they print the check, determine FICA, send check to the gov't/IRS for you, so you don't have to do anything but pay a hefty charge and all your payroll worries are gone.

Maybe if you do the questions in regards to that section it might help. Also, replace the word “service” with ADP (a real company name-) and replace “user” with a name of a Client like “Jeff's Company's” This might make it easier.. so in Becker page A3-55 Change the following..

A. Jeff's Company's auditor's responsibilities

1. Jeff's Company's auditor must.. blah blah

B. ADP's Auditor Responsibilies

1. The ADP's Auditor should… blah blah

Keep in mind you are auditing Jeff's Company, but Jeff's Company employs ADP to complete their payroll.

I think this might even help me!

[PleasePass]

already bought your notes jeff, just haven't looked at them yet…perhaps i should lol..

FAR (10/15/10) = 94
AUD (11/24/10) = 89
BEC (5/20/11) = 87
REG (8/23/11) = 78

[Author]

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