A Service Auditor’s Report is used by a service organization to convey to its clients the extent of internal control systems which are in operation.
The Canadian Standard on Assurance Engagements (CSAE 3416) allows auditors to issue a service Auditor’s Report regarding whether described controls:
- are presented fairly,
 - are suitably designed to achieve the control objectives, and
 - whether they are operating effectively (Type 2 report).
 
The following is a sample list of organizations which may be required to produce this type of audit report:
- Payroll service providers,
 - Claims processors,
 - Benefits administrators,
 - Third party administrators,
 - Data centres,
 - Application service providers (ASPs), and
 - Outsourced IT departments
 
(This is not an exhaustive list)
															
									