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With the rapid growth of cloud computing, many organizations are contracting with third-party service providers to process and store all kinds of data off site.

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With the rapid growth of cloud computing, many organizations are contracting with third-party service providers to process and store all kinds of data off site. In doing so, entities are now dependent on the effectiveness of controls provided by external software providers and data centers that are used to generate and store a huge volume of important information for making critical business decisions. Read the requirements. Requirement c. What kind of report could the auditor of the user entity obtain from the service organization, if the user auditor needed information about the operating effectiveness of controls at the service organization? ?1. When clients outsource some or all o their IT needs to an independent computer sence organization. their auditors could examine a Type 3 SOC 2 report on management's description o a service organization's system and the suitability of the design and operating effectiveness of controls. In a Type 3 engagement, the service auditor performs tests of the operating etfectiveness of the controls at the service organization, in addition to procedures performed in the Type 2 engagement. The service auditors Type 3 report contains the two opinions about the description and suitability of the design of controls that are provided in a Type 2 report, plus an additional opinion about the operating effectiveness of controls throughout the period ?2. When clients outsource some or all o her T needs to an independent computer sence organization, their auditors could examine a Type 0 3 report on management's description o a service organization's system and the suitability of the design and operating effectiveness of controls. In a Type 1 engagement, the service auditor performs tests of the operating effectiveness of the controls at the serice organization, in addition to procedures performed in the SOC 1 engagement. The serice auditor's Type 1 report contains the two opinions about the description and suitability of the design of controls that are provided in a SOC 1 report, plus an additional opinion about the operating effectiveness of controls throughout the period ?3. When clients outsource some or all of their T needs to an independent computer sence organization, their auditors could examine a Type 1 S C 2 report on management's description o a service organization's system and the suitability of the design and operating effectiveness of controls. In a Type 1 engagement, the service auditor performs tests of the operating effectiveness of the controls at the service organization, in addition to procedures performed in the Type 2 engagement. The sevice auditor's Type 1 report contains the two opinions about the description and suitability of the design of controls that are provided in a Type 2 report, plus an additional opinion about the operating effectiveness of controls throughout the period ?4. When clients outsource some or all o their T needs to an independent computer sence organization, their auditors could examine a Type 2 SOC 1 report on management's description of a ser ce organizations system and the suitability of the design and operating effectiveness of controls. In a Type 2 engagement, the service auditor performs tests of the operating effectiveness of the controls at the service organization, in addition to procedures performed in the Type 1 engagement. The service auditor's Type 2 report contains the two opinions about the description and suitability of the design of controls that are provided in a Type 1 report, plus an additional opinion about the operating effectiveness of controls throughout the period

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