Why is the standard changing?
This paper focuses on the changes from the Section 5970
standard to the new CSAE 3416 standard, including comments on the
impact of those updates on service organizations and service
auditors.
Organizations that provide services that impact their
customers' financial reporting processes are often subject to
audits of these processes executed on behalf of their customers.
The Auditor's Report on Controls at a Service Organization,
Section 5970 has long been the governing standard in Canada for
performing these audits, and giving the service organization a
mechanism for providing an independent audit report to their
customers and their customers' auditors. The requirements and
guidance for Canadian auditors reporting under Section 5970 will be
superseded by a new Canadian Standard on Assurance Engagements
(CSAE 3416). Globally, many countries do not have their own
standard for performing such audits, which led to the creation of
an
