An organization outsources its payroll function to a third-party service provider. Which of the following is MOST important for an IS auditor to verify when reviewing the outsourcing agreement?
An organization outsources its payroll function to a third-party service provider. Which of the following is MOST important for an IS auditor to verify when reviewing the outsourcing agreement?
For an IS auditor reviewing an outsourcing agreement for payroll functions, verifying that the provider has agreed to a right-to-audit clause (Option A) is the most critical step. It provides the organization with the necessary control and assurance over the third-party provider’s handling of sensitive payroll data, surpassing the other options in importance and impact.