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ME2.6 - Internal Control at Third Parties

This topic is intended to enable collaboration and sharing of information to facilitate a better understanding and approach to implementing this COBIT control objective based on the risk, value and guidance provided by its corresponding control practices.

COBIT Control Objective ME2.6 - Internal Control at Third Parties is contained within Process Popup Monitor and Evaluate Internal Control.

Learn more about COBIT and related publications.

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Internal Control at Third Parties

Assess the status of external service providers’ internal controls. Confirm that external service providers comply with legal and regulatory requirements and contractual obligations.

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Value Drivers

  • Identification of service improvement opportunities for third parties
  • Confirmation of an effective internal control framework over third-party service providers
  • Assurance provided over the service provider’s performance and compliance with internal controls
  Risk Drivers
  • Insufficient assurance over the service provider’s control framework and control performance
  • Failures of mission-critical systems during operation
  • IT services failing to meet the service specifications
  • Failures and degradations of service from the provider not identified in a timely manner
  • Reputational damage caused by provider service performance degradation

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  1. Ensure that appropriate internal control requirements are addressed in third-party contract agreements. Where appropriate, ensure that the contract has provisions for audit or review, e.g., certification/accreditation review, an appropriate audit engagement (e.g., SAS 70 Type II engagement), or by direct audit of the service provider by IT management.
  2. Ensure that third-party service providers comply with applicable laws, regulations and contractual commitments. Communicate to business process owners, IT management and third-party service providers any failure to comply with such commitments.
  3. Confirm receipt of any required legal or regulatory internal control assertions from affected third-party service providers. Investigate exceptions. Obtain assertions from the service provider that appropriate remedial actions will be completed according to an agreed-upon remediation plan.

 

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3 May 2012
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Journal Articles: 610 total

Volume 2, 2019
by ISACA Member and Certification Holder Compliance
Volume 3, 2012
by Ookeditse Kamau, CISA, CIA
Quality evidence collected during the audit process enhances the overall quality of the work performed and significantly reduces audit risk.
Volume 3, 2012
by Tommie W. Singleton, Ph.D., CISA, CGEIT, CITP, CPA
This two-part article describes one framework for performing effective audits of applications.
Volume 3, 2012
by Brian Vazzana, CISA, CITP, CPA
SOC reports examine the controls present at the service organizations and consider how those controls are designed and operate.
Volume 3, 2012
by Miklos A. Vasarhelyi, Ph.D., Silvia Romero, Ph.D., Siripan Kuenkaikaew, CISA, and Jim Littley
This article examines how internal audit has progressed with the implementation of CA/CM.
Volume 3, 2012
by ISACA Member and Certification Holder Compliance
An up-to-date listing of the current IT Audit and Assurance Standards, Guidelines, and Tools and Techniques

Wikis: 2 total

Blog Posts: 92 total

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Posted By : KvR | 0 comments
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