ExpertHard1 markMultiple Choice
CPA · Question 15 · Area III: SOC Engagements
A service organization uses the 'Carve-out' method for a subservice organization that provides data center hosting. In the SOC 2® report, how are the controls of the data center presented?
A service organization uses the 'Carve-out' method for a subservice organization that provides data center hosting. In the SOC 2® report, how are the controls of the data center presented?
Answer options:
A.
They are fully described and tested by the service auditor.
B.
They are excluded from the description and testing, but the nature of the services provided is described.
C.
The service auditor issues a disclaimer of opinion regarding the data center.
D.
Management asserts that the data center controls are effective without testing.
How to approach this question
Understand 'Carve-out' vs 'Inclusive'. Carve-out = 'Not my problem, go look at their report'. Inclusive = 'I am taking responsibility for them'.
Full Answer
B.They are excluded from the description and testing, but the nature of the services provided is described.✓ Correct
They are excluded from the description and testing, but the nature of the services provided is described.
The carve-out method excludes the subservice organization's controls from the scope of the service auditor's testing. The system description identifies the services provided but does not include their specific controls.
Common mistakes
Confusing Carve-out with Inclusive method.
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