The CEO оf PаyWоrks hаs inquired yоur compаny, AllAssurance, CPAs, about performing a SOC engagement for them. You have been tasked with completing AllAssurance's reply below. From: AllAssurance, CPAsTo: Mr. Gant, CEO, PayWorks Thank you for the opportunity to respond to your requests. I will provide you with a description of the services that I believe you could use. You have a number of choices and options. I will break this down into the two different services that you provide. Payroll Processing by PayworksYour payroll processing provided to clients should include internal controls over the processing. Your controls should ensure clients that . The service auditor’s report on controls will be important to your clients because . The controls that we will be most concerned about for your client payroll processing will be . Based on the needs of your clients, we propose a . Most clients will request that your service auditor provide an opinion on management’s description of the organization’s system, the suitability of the design of the controls, and operating effectiveness of controls for a period of time. Thus, we will provide this with a . Payroll Processing by ClientYour services provided to clients who use your website and data storage will have different needs. They will most likely want assurance that you have controls over. Because of the nature of the report we will issue, it . Because your clients will want assurance as to the effectiveness of your controls, a engagement is most appropriate. AllAssurance, CPAs
Mаny оf the issues аddressed in the аttestatiоn standards that apply tо SOC engagements are also required by GAAS for financial statement audits. For each of the following issues, select from the option list provided whether or not they are required by the attestation standards for SOC and for GAAS for financial statement audits. Each choice may be used once, more than once, or not at all. Issue Requirement Requiring the CPA to be independent Requiring an assertion about the fairness of the financial statements Requiring management to provide an assertion relating to the controls Addressing materiality Obtaining personal financial statements from management Gaining an understanding of the controls Collecting sufficient appropriate evidence to support the opinion Obtaining a representation letter Forming an opinion about the fairness of the financial statements Communicating with the client’s attorney