What about online administration services?
Auditors should guard against placing inordinate reliance on the agreed upon procedures (AUP) report issued by auditors of entities providing online administration services. The AUP performed only confirm that the trust balances and interest included in the report agree with the information contained in the online administration services system, and do not address controls and audit procedures performed. Auditors should compare the report obtained to all assertions for balances and classes of transactions, considerations relating to controls and relevant ISA requirements, in order to determine alternative procedures which may have to be performed.
An entity providing online administration services should be treated as a service organisation, in terms of ISA 402. Therefore, the estate agency’s controls over the service organisation should be evaluated and a separate Type 1 or Type 2 report obtained from their auditors, where reliance on controls of the service organisation is intended, as opposed to controls at the estate agency over transactions administered by the estate agency. Ultimately, the audit approach and procedures would be determined by the size and risks of the entity.