Academic journal article Journal of Accountancy

AICPA Launches SOC for Supply Chain: The Voluntary Framework Enables Reporting on Control Effectiveness

Academic journal article Journal of Accountancy

AICPA Launches SOC for Supply Chain: The Voluntary Framework Enables Reporting on Control Effectiveness

Article excerpt

The AICPA has launched SOC for Supply Chain, a market-driven, flexible, and voluntary framework for organizations to communicate certain information about their manufacturing, production, or distribution system and the effectiveness of controls that mitigate supply chain risks.

The introduction of this new framework provides an opportunity for organizations to have an examination engagement performed on their manufacturing, production, or distribution system. This type of audit provides a CPA's opinion on the organization's description of the system it uses to manufacture, produce, or distribute products and an opinion on the effectiveness of the controls within that system.

Three resources that support the framework were also released (for more details, visit tinyurl.com/vwh5fo2):

* Description criteria: The AICPA's Description Criteria for a Description of an Entity's Production, Manufacturing, or Distribution System in a SOC for Supply Chain Report includes the criteria used to prepare and evaluate the description of a manufacturer's, producer's, or distribution company's system.

* Trust services criteria (updated): The AICPA's 2017 Trust Services Criteria for Security, Availability, Processing Integrity, Confidentiality, and Privacy is used to evaluate and report on the effectiveness of the controls within an organization's system. …

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