CPA - ISC - SOC Opinions

If the service auditor is unable to obtain sufficient appropriate evidence (i.e., scope limitation) and the nature of the matter giving rise to the modification is material, but not pervasive, what should the opinion type be?

Qualified opinion

If the service auditor is unable to obtain sufficient appropriate evidence (i.e., scope limitation) and the nature of the matter giving rise to the modification is material and pervasive, what should the opinion type be?

Disclaimer of opinion

If the description is materially misstated (i.e., material misstatement) and the nature of the matter giving rise to the modification is material, but not pervasive, what should the opinion type be?

Qualified opinion

If the description is materially misstated (i.e., material misstatement) and the nature of the matter giving rise to the modification is material and pervasive, what should the opinion type be?

Adverse opinion

What element of a SOC 1 report must be modified, if a qualified opinion is issued?

The opinion section.

A separate paragraph, before the opinion paragraph, should be inserted to provide a description of the matters giving rise to the modification.

In addition, the service auditor’s opinion paragraph should be amended to note, “In our opinion, except for the matter referred to in the preceding paragraph, in all material respects, based on the criteria described in assertion in Section 2…”.

What element(s) of a SOC 2 report must be modified, if a qualified opinion due to material misstatements is issued?

The Service Auditor’s Responsibilities and Opinion sections.

• The service auditor’s responsibility paragraph should be amended to state that the service auditor believes that the evidence the service auditor has obtained is sufficient and appropriate to provide a basis for the service auditor’s qualified opinion

• For the opinion section:

  • a separate paragraph, before the opinion paragraph, should be inserted to provide a description of the matters giving rise to the modification.

  • in addition, the service auditor’s opinion paragraph should be amended to note:

    • “In our opinion, except for the effects of matters giving rise to the modification, the description is presented in accordance with the description criteria and the controls were suitably designed and operating effectively (Type 2) to provide reasonable assurance that the service organization’s service commitments and system requirements were achieved based on the applicable trust services criteria, in all material respects”

What element(s) of a SOC 2 report must be modified, if a qualified opinion due to scope limitations is issued?

The Service Auditor’s Responsibilities and Opinion sections.

• The service auditor’s responsibility paragraph should be amended to state that the service auditor believes that the evidence the service auditor has obtained is sufficient and appropriate to provide a basis for the service auditor’s qualified opinion

• For the opinion section:

  • a separate paragraph, before the opinion paragraph, should be inserted to provide a description of the matters giving rise to the modification.

  • in addition, the service auditor’s opinion paragraph should be amended to note:

    • “In our opinion, except for the possible effects of the matters giving rise to the modification, the description is presented in accordance with the description criteria and the controls were suitably designed and operating effectively (Type 2) to provide reasonable assurance that the service organization’s service commitments and system requirements were achieved based on the applicable trust services criteria, in all material respects”

What element(s) of a SOC 1 report must be modified, if a adverse opinion is issued?

The Opinion section.

A separate paragraph, before the opinion paragraph, should be inserted to provide a description of the matters giving rise to the modification.

In addition, the service auditor’s opinion paragraph should be amended as follows:

• “In our opinion, because of the matter referred to in the preceding paragraph …”

• “The description does not …”

• “… control objectives stated in the description were not …”

• “… control objectives stated in the description were achieved, did not …”

What element(s) of a SOC 2 report must be modified, if a adverse opinion is issued?

The Service Auditor’s Responsibilities and Opinion sections.

• the service auditor’s responsibility paragraph should be amended to state:

  • “we believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our adverse opinion”

• regarding the opinion:

  • A separate paragraph, before the opinion paragraph, should be inserted to provide a description of the matters giving rise to the modification.

  • In addition, the service auditor’s opinion paragraph should be amended as follows:

    • “In our opinion, because of the significance of the matter(s) referred to in the preceding paragraph …”

    • “The description does not …”

    • “… control objectives stated in the description were not …”

    • “… control objectives stated in the description were achieved, did not …”