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Tyler Company uses a cloud service organization to process all of its sales transactions. Tyler's auditors received a Type 1 report from the cloud service

Tyler Company uses a cloud service organization to process all of its sales transactions. Tyler's auditors received a Type 1 report from the cloud service auditors. As a result, Tyler's auditors can rely on the results of substantive tests described in the report. Tyler's auditors will probably not be able to perform the audit. Tyler's auditors will probably need to visit the service organization to perform tests of controls. Tyler's auditors can be assured that the controls at the service organization are operating effectively.

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