Area III: SOC Engagements — CPA Practice Question 10

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Differentiate 'Carve-out' (excluded from testing scope) vs 'Inclusive' (included in testing scope).

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A.The service organization's description identifies the services performed by the subservice organization but excludes the subservice organization's controls from the scope of the examination.✓ Correct

A

In the carve-out method, the subservice organization's controls are excluded from the examination scope. The service auditor reports on the controls of the service organization and notes that the subservice organization's controls were not tested.

Common mistakes

Confusing Carve-out with Inclusive method.

Which of the following scenarios BEST describes a 'Carve-out' method in a SOC 2® report involving a subservice organization?

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Common mistakes

Practice the full CPA ISC Practice Exam 3

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