TPA - Third party assurance - SOC 1, SOC 2, SOC 3

Today, there is a growing awareness of organizations that outsourcing functions of their business to a third party introduces certain risks. As a consequence it is critical for user organizations to manage any potential risk and obtain proper assurance and transparency over those services outsourced to a third party. One of the most effective ways via which organizations (i.e. third parties) can communicate information about its risk management and controls is through a Service Auditor Report. Deloitte offers a range of third party assurance services such as Assurance Reporting (e.g. ISAE 3402, SSAE 16 (SOC 1), ISAE 3000, SOC 2 and SOC 3) and agreed-upon procedures (AUP) reporting.

A third party assurance report provides assurance over the design and/or operating effectiveness of a service organization’s internal controls to achieve common business objectives of interest to customers/users of the services. This is increasingly important as organizations are now more dependent on third parties to fulfil part or all of their critical business processes right across their value chain, including those that directly impact users of the services.


How can Deloitte help?

Deloitte conducts independent assessments of an organization’s control procedures to establish if existing controls/processes meet management objectives and to demonstrate controls to customers and their auditors through reporting and integrated requirements.In order to help Companies to appropriately manage and to become aware of risks, we at Deloitte can offer following services:

  • Reporting and audit requirements: SOC 1, 2, and 3 reports (based on SSAE 18, and ISAE 3402 guidance); Custody Rule; agreed-upon procedures (AUP); and other attest reports;
  • Managing third-party relationships in an efficient and cost-effective way, from the proper selection of an outsourced service provider (OSP) to re-evaluating contract terms and conditions;
  • Identifying, assessing and managing outsourcing risks;
  • Minimizing audit requests: Third-party services can reduce the number of requests to audit an OSP’s internal controls by different customers and their auditors;
  • Third-party assurance readiness and optimization: Readiness assessments can provide an OSP’s management with the insight and tools needed to address reporting requirements. Third-party assurance optimization identifies areas of efficiency that increases effectiveness for users, reigns in the cost of compliance, and streamlines reporting.