Introduction You are an experienced staff accountant working on the audit of RB Johnson Electric Company (the Company) as of and for the year ended December 31, 2022. All of the outstanding common stock of the Company is owned by Barry and Sam Johnson, who are brothers. The Company is engaged in commercial electrical construction on the East Coast of the United States. The Company was formed on January 1,1947 , and has been in continuous operation since that date. The Company employs approximately 100 people and has normal revenues between $25 and \$35 million. The Company's bonding needs and its line of credit agreement, with Truist, require the financial statements to be audited. The Company has a very good Chief Financial Officer, who was at one time a manager with your firm. Your firm has audited the financial statements for the last 10 years. Adam Silvia is the engagement partner and Joey Sykes is the engagement manager. Based on some staffing issues, you have effectively been assigned the role of engagement senior on this client and you are excited to be working with Joey and having a number of increased responsibilities. The audit has been completed and you and Joey are getting ready to transmit the completed file to Adam for his review. The Company uses the accrual method of accounting and recognizes revenue on the percentage completion method of accounting. The Company's recent adoption of ASC 606 did not materially impact the Company's revenue recognition. The Company's trial balance, as of and for the year ended December 31, 2022, follows. Problem 4 (Entities that Use Service Organizations) The Company's payroll (a substantial portion of which is recorded as a part of the cost of revenues) is processed on a weekly basis by Joe's Payroll Service (Joe's) which is located in Norfolk, Virginia. Joe's provides direct deposit and has been processing the payroll for the Company for over 5 years without any problems. Despite repeated request by the Company and other customers of Joe's Payroll Service, Joe's does not have either a service auditor's type 1 or type 2 report available for your review. Required 1. In your own words, describe the difference between a type 1 and type 2 service auditor's report. 2. In the absence of the availability of either a type 1 or type 2 service auditor's report, describe the procedures that the user auditor (your firm) should perform. 3. What are complementary user entity controls