Organisations are being requested or required to provide more and more information about their internal controls environment to a variety of external and internal stakeholders.
In other terms, anyone who does not have control or direct oversight of information, data processing or other deliverables that are managed, processed or produced by someone else may want assurances that such information, data processing or deliverables are in accordance with their expectations.
Therefore, clients or other interested parties (i.e. "third parties") that rely on others (be it as a customer, service provider or a link in a supply chain) need a robust way of demonstrating that the risks associated with the provision of the service are identified, controlled, measured and managed in a reliable and cost efficient manner.
Third Party Assurance, a general term that we are using to articulate a three-way relationship between various parties and involving PwC, may be an effective mechanism for PwC to provide required independent assurances to another party.
The following illustrates Third Party Assurance relationships that may exist across different industries:
The following are activities for which there is an increasing demand to provide third party assurance reports: