SOC for Supply Chain : guide reporting on an Examination of Controls Relevant to Security, Availability, Processing Integrity, Confidentiality, or Privacy in a Production, Manufacturing, or Distribution System

Internal and external forces such as globalization, global interconnectivity, automation, and other technological advancements are making today's supply chains highly sophisticated and complex. For organizations that produce, manufacture or distribute products, there's often a high level of interdependence and connectivity with their suppliers and their customers and business partners. Although the interconnectedness of these organizations can be beneficial (increased revenues, expanded market opportunities, and cost reduction), the ability of organizations to meet their goals is often increasingly dependent on events, processes, and controls that are not visible and are often beyond their control ' such as a supplier's controls. That's why the demand for transparency in supply chains is now higher than ever before, and why this is the perfect time for you to help organizations assess their supply chain risks, evaluate the system controls within their manufacturing, production, or distribution systems, and communicate their supply chain management efforts to those with whom they do business. Accountants and financial managers can also increase the credibility of the supply chain information communicated by the organization by providing an opinion on the organization's supply chain efforts. This guide enables the accountant and financial manager to examine and report on the description of a system for manufacturing, producing and distributing goods as well as on the controls within that system using a dynamic, proactive, and agile approach. It will show how to conduct this examination in accordance with the attestation standards. The guide may also be helpful when providing readiness assessments to clients, who are not quite ready for an examination level service and need help to get there. The guide also includes excerpts from the two distinct, but complementary sets of criteria developed by the AICPA to assist practitioners with SOC for Supply Chain engagements: the description criteria and the 2017 trust services criteria. ';Cover -- Title Page -- Copyright Page -- Preface -- Table of Contents -- Chapter 1 Introduction and Background -- Introduction -- Intended Users of a SOC for Supply Chain Report -- Overview of a SOC for Supply Chain Examination -- Contents of the SOC for Supply Chain Report -- Defining the System to Be Examined -- The Entity's System Objectives and Principal System Objectives -- Selecting the Trust Services Category or Categories to Be Addressed by the Examination -- Determining the Time Frame for the Examination -- Other Engagement Considerations

Internal and external forces such as globalization, global interconnectivity, automation, and other technological advancements are making today's supply chains highly sophisticated and complex. For organizations that produce, manufacture or distribute products, there's often a high level of interdependence and connectivity with their suppliers and their customers and business partners.

Although the interconnectedness of these organizations can be beneficial (increased revenues, expanded market opportunities, and cost reduction), the ability of organizations to meet their goals is often increasingly dependent on events, processes, and controls that are not visible and are often beyond their control – such as a supplier's controls. That's why the demand for transparency in supply chains is now higher than ever before, and why this is the perfect time for you to help organizations assess their supply chain risks, evaluate the system controls within their manufacturing, production, or distribution systems, and communicate their supply chain management efforts to those with whom they do business.

Accountants and financial managers can also increase the credibility of the supply chain information communicated by the organization by providing an opinion on the organization's supply chain efforts. This guide enables the accountant and financial manager to examine and report on the description of a system for manufacturing, producing and distributing goods as well as on the controls within that system using a dynamic, proactive, and agile approach. It will show how to conduct this examination in accordance with the attestation standards. The guide may also be helpful when providing readiness assessments to clients, who are not quite ready for an examination level service and need help to get there.

The guide also includes excerpts from the two distinct, but complementary sets of criteria developed by the AICPA to assist practitioners with SOC for Supply Chain engagements: the description criteria and the 2017 trust services criteria.

Cover......Page 1 SOC for Supply Chain: Reporting on an Examination of Controls Relevant to Security, Availability, Processing Integrity, Confidentiality, or Privacy in a Production, Manufacturing, or Distribution System, 2020......Page 2 Copyright......Page 3 Preface......Page 4 TABLE OF CONTENTS......Page 12 1 Introduction and Background......Page 18 2 Accepting and Planning a SOC for SupplyChain Examination......Page 38 3 Performing the SOC for Supply ChainExamination......Page 79 4 Forming the Opinion and Preparingthe Practitioner’s Report......Page 134 Supplement A 2020 Description Criteria for a Description ofan Entity’s Production, Manufacturing, orDistribution System in a SOC for SupplyChain Report......Page 170 Supplement B 2017 Trust Services Criteria for Security,Availability, Processing Integrity,Confidentiality, and Privacy......Page 185 Appendix A Information for Entity Management......Page 235 Appendix B Comparison of SOC for Supply Chain,SOC 2®, and SOC for CybersecurityExaminations and Related Reports......Page 276 Appendix C Illustrative Management Assertion in a SOCfor Supply Chain Examination......Page 284 Appendix D Illustrative Accountant’s Report for a SOCfor Supply Chain Examination......Page 285 Appendix E Illustrative SOC for Supply Chain Report(Including Entity Management’s Assertion,Accountant’s Report, and IllustrativeDescription of the System)......Page 288 Appendix F Definitions......Page 335 Appendix G Overview of Statements on QualityControl Standards......Page 339 Index of Pronouncements and Other TechnicalGuidance......Page 349 Subject Index......Page 351