The Institute of Accountants in England and Wales (ICAEW) has updated its guidance on conducting assurance engagements on the internal controls of services organisations, following a public consultation last year.
Assurance reports on internal controls of service organisations made available to third parties, TECH 01/20 AAF replaces TECH 01/06 AAF and will come into effect for reporting periods beginning on or after 1 July 2020.
The ICAEW noted that organisations often outsource aspects of their business activities to third party ‘service organisations’ and that the guidance provided aims to enable service organisations to engage an independent practitioner to provide an assurance opinion on the controls in place over those outsourced activities.
Read the full article in the International Accounting Bulletin here