SOC engagements
The SOC Opinion
Grade the opinion by severity: unmodified when fair, qualified for a limited problem, adverse when pervasive, disclaimer when scope is lost.
How the exam words it
- -The stem describes control deficiencies and asks which opinion the service auditor should issue.
- -It varies the severity or pervasiveness of a misstatement or scope limitation and asks unmodified, qualified, adverse, or disclaimer.
- -It asks how a carved-out subservice organization is treated in the opinion.
- -It describes a description that is not fairly presented or controls that did not operate effectively and asks for the report effect.
The playbook
- 1Start from unmodified (unqualified) when the description is fairly presented and the controls are suitably designed and, for a Type 2, operating effectively.
- 2Step down by severity: a qualified opinion for a specific, non-pervasive problem, an adverse opinion when the issue is pervasive, and a disclaimer when a scope limitation prevents an opinion.
- 3Treat a carve-out subservice organization as disclosed but outside the opinion: the service auditor does not opine on the excluded controls.
- 4Tie the trigger to the phrase: a description not fairly presented or ineffective controls drives a qualified or adverse opinion, while a scope restriction drives a disclaimer.
The trap
Jumping to adverse for any deficiency, or thinking a carve-out is covered by the opinion. Adverse is only for pervasive problems, and carved-out controls are excluded, not opined on.
How the exam varies it
The same pattern, re-skinned along these axes:
Opinion by severity: unmodified, qualified, adverse, or disclaimerA fair-presentation problem versus a scope limitationHow a carve-out subservice organization is treated in the opinion
Drill this pattern
8 questions of The SOC Opinion from across the AUD topics. Clear it by getting 5 right with a streak of 3.