While the main focus still remains the overall operating effectiveness of business controls within the organisation, the implementation of additional controls results in additional work and numerous reports being issued by auditors to verify the existence of these controls, to satisfy the needs of regulatory authorities. Regulatory reporting, however, is a critical function for service organisations as they are held to high standards and an ISAE3402 report is an effective manner of showcasing their services.
Further to this, and considering the growing cyber security landscape and cyber threats impacting businesses, there has also been a shift to include the control environment surrounding cyber security. The cyber world has witnessed an increase in attacks in the last few years and organisations are directing a lot of time and energy into the creation of effective cyber ecosystems.
The reality is that organisations need to share information about threats and vulnerabilities they are facing, in order to bring these matters to light and assist others in combatting cyber threats. ISAE3402 reports could serve as a solid platform for doing this, as organisations not only get to engage with their clients and give them the peace of mind they are longing for but ultimately lead to greater awareness for information security.
Organisations need to focus their attention on the design and implementation of ‘smart’ controls that offer their clients comfort in knowing that the safeguarding of their assets is kept under lock and key. ISAE3402 reports can be well developed to address these user issues and display the ability of organisations to keep their client’s monies in their pockets while they sleep at night.
An ISAE3402 report can demonstrate that an entity has the ability to effectively manage cyber risk and adhere to stringent regulatory requirements instilled by the regulatory authorities. Examples of this include controls to ensure that the system is protected against unauthorised access and the complete and accurate reporting of client transactions in a timely manner. Further benefits include the promotion of trust between service organisations and their clients, as well as overall stronger control and governance environments due to suggested control improvements and best practices shared within the industry.
In the past, clients of service organisations have had to rely on evidence obtained through external audits and on-site visits to assess whether there are adequate controls around the safeguarding of their assets and the record keeping thereof. The ISAE3402 report results in a control focused solution that can be tailored to satisfy the needs of service organisations, their clients and that of regulatory authorities alike.
With the vast number of service organisations operational in the market, regulatory pressures, as well as cyber risk concerns, organisations need to stay at the forefront of measures to keep their clients satisfied. Clients have become increasingly reliant on ISAE3402 reports for this exact reason and effective control environments are regarded as the key to success in a rapidly expanding financial environment.
It is, therefore, imperative for service organisations to partner with the right service providers to assist them in preparing new reports or taking existing reports to new heights through the inclusion of key focus areas in and around the regulatory and cyber markets. Many clients are currently facing the same issue and service organisations are encouraged to leverage off the benefit of solutions which have already had a positive response in the marketplace. Seeking objective and practical solutions is what every service organisation should do to ensure the efficient production of their ISAE3402 assurance report.
