Service Organizations Practice Test

A nonissuer e-commerce company is undergoing a financial statement audit and uses a service organization for order fulfillment and returns processing, which generates return accrual reports used to estimate sales returns. The SOC 1 Type 2 report notes that controls over timely recording of returns were not operating effectively during peak season and identifies a complementary user entity control requiring the company to review weekly returns trend analytics. Which action should the auditor take based on SOC 1 findings?

A nonissuer insurance agency is undergoing a financial statement audit and uses a service organization to calculate and remit commissions payable to agents, providing monthly commission statements used to record liabilities. The SOC 1 Type 2 report indicates that controls over completeness of policy data used in commission calculations were not operating effectively and notes the user entity must reconcile policy listings to commission statements monthly. Based on the SOC 1 report, which audit procedure is most appropriate?