Why Should Your Service Organization Provide a SOC Report to Customers?
Jan 23,2018
As an outsourced vendor of tasks for businesses, you may be asked to provide your customer with reliable documentation that your systems and procedures are structured in a way that significantly minimizes their risks. Businesses that most often are asked to provide this documentation are those that provide services such as:data backupscloud computingnetwork monitoringtelecommunications platformsapplication developmentmanaged securitybill processingreceivables collectionspayroll services Experience has shown that simple questionnaires and contractual clauses are not sufficient for businesses to rely on. The American Institute of Certified Public Accountants stresses this to business owners by stating, “Although management of a user entity can delegate tasks or functions to a service organization, the responsibility for the service provided to customers of the use entity cannot be delegated.  Management of the user entity is usually held responsible for governance (for example, the board of directors); customers’ shareholders’ regulators’ and other affected parties for establishing effective internal control over...

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