Carve-out Method

Carve-out Method: The method used to address the services provided by a subservice organization. This method permits the management’s description of the service organization‘s system to identify the nature of the services perform by the subservice organization and excludes from the description and from the scope of the services auditor’s engagement the subservice organization’s relevant control objectives and related controls. In other words, the carve-out method allows the service auditor to exclude subservice organizations from the audit.

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