How do you know that your outsourced providers have adequate controls in place over the processes they undertake?
Effective for periods ending 31 March 2007 onwards, the Institute of Chartered Accountants has issued AAF 01/06, replacing FRAG 21, to address this issue. This guidance can be adapted to provide certification on the controls of any service, although is primarily aimed at certain financial services such as pension administration and fund management.
Essentially, the guidance provides a framework for reporting accountants to provide an audit certificate on the controls in place over the processing that is being undertaken by the third party.
