Organizations' depend on third party service providers for a range of critical services and support with hosting or managing financial and non-financial information and outsourced critical business operations.
Service organizations must demonstrate that they have proper internal controls in place for the outsourced business operations undertaken on behalf of their clients. Service organisations must accurately communicate the integrity of their financial and non-financial internal controls, data security, availability, processing integrity, confidentiality, and privacy to their stakeholders.
In today’s highly competitive marketplace, the Service Organization Controls (SOC 1 & 2) or Internal Standard of Assurance Engagement (ISAE 3000 & 3402) Reports are intended to build trust between organizations and its stakeholders for the outsourced services by providing assurance over service organizations’ internal controls and processes.
Organizations can outsource operations but they cannot outsource the accountability for them.