We are experiencing a growing specialization and dislocation of services within companies. Share Service Centres, and generally speaking any company providing services, need homogenous criteria in order to assess their internal control. They need independent reports that can be furnished and accepted in their client’s audits. They need these reports to cover all their demands and particularities, thus avoiding repeated reviews of their processes and controls.
Declaration on audit standards number 70 developed in 1992 is an audit standard issued in USA by the American Institute of Certified Public Accountants (AICPA). The main aim of this standard was to provide the financial auditor with sufficient evidence on the level of internal control implemented in service companies subcontracted by the client. When planning an audit on the client’s financial statements, auditors can review internal control procedures within the service company or base their work on the report of another auditor.
But for service companies (outsourcing) having to deal with the requirements of each of their client’s auditors quite often represents an additional burden.
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