Video: Service Organizations

This lesson focuses on service organizations and their significance in the auditing process. It discusses the concept of service organizations, which are entities that provide specialized services to user organizations as part of the user organization's information system. Examples provided include payroll services like ADP, cloud storage services like Google Drive, and external accounting firms. The lesson highlights the role of service auditors, who report on the controls of service organizations that may be relevant to a user organization's internal control during a financial statement audit. Additionally, the lesson covers the importance of determining the professional reputation of the service auditor and how their report can be utilized in forming an audit opinion.