Service Organization Control reports are designed to give user entities and service organizations a means of quality assurance. While Service Organization Control 1 and Service Organization Control 2 reports are very detailed in providing both the results and the approaches on how to achieve those results, Service Organization Control 3 reports present a more general overview of the end results. Also, Service Organization Control 3 reports are the frequently requested reports when the user entity needs to make the report a public knowledge.
With Service Organization Control 3 reports, users are given assurance and guarantee that the services they received are of impeccable quality, and are shown through the general overview. Following the Trust Principles Criteria developed by the American Institute of Certified Public Accountants (AICPA), the auditor tests the areas of security, confidentiality, privacy, processing integrity, and availability.
Service Organization Control 3 as a Marketing Tool
Probably one of the most effective ways of using Service Organization Control 3 reports is as a marketing tool. As this report can be distributed to the public, Service Organization Control 3 can be used outside the realms of interagency workings. The information and details contained in Service Organization Control 3 can be shared to managers, shareholders, potential investors, and clients whose confidence and trust needs to be gained.
Organization’s Management and Service Organization Control 3
Service Organization Control 3 reports are designed for the management when looking to carry out their due diligence. In addition, Service Organization Control 3 reports ensure that the outsourced functions are operating and functioning at a desirable performance level, if not the best. Furthermore, these reports are ideal for users who do not need a very detailed and comprehensive information over the testing process that is required for a Service Organization Control 2 report. Moreover, Service Organization Control 3 reports is the best fit for the management that does not have the time or the ability to read through all the controls used and the test designs in and of themselves.
Online Retailers and Service Organization Control 3
It is common for enterprises to team up with another business entity in selling their products on the Internet. However, consumers are concerned with the privacy and security of information they disclose or share with enterprises and their business partners. In addressing these matters, business entities can utilize Service Organization Control 3 report in providing assurance and guarantee that their clients’ information are being maintained and processed.
Vendor Management and Service Organization Control 3
It is a must that users evaluate the effect of employing Service Organization Control 3 on risk management and business-related matters. As such, the vendor relationship must undergo inventory. The significant risks related to outsourcing vendors should also be assessed and the Principles that will be covered by the Service Organization Control 3 report must be identified. Monitoring the vendor, going through a due diligence, and laying out the communication plan are the next key steps in ensuring an effective Service Organization Control 3 report.
- Other points addressed by Service Organization Control 3 reports are the capability of a service organization to meet their clients’ demanding needs, outcome of the processed business proceeding (is it thorough, outright, or definitive?), and adherence or compliance to confidentiality practices.
Through effective use of Service Organization Controls, client and customer confidentiality can be ensured and good business practice upheld.