Five Reasons to Implement ISAE 3402
ISAE 3402 is the standard for outsourcing processes and security. It is increasingly required across various industries and by government entities for participation in tenders.
1. Your Clients Expect an ISAE 3402 Report.
Your clients expect you to have robust procedures in place for IT, data security, and transaction processing, and to provide assurance regarding these processes. An ISAE 3402 report includes the outsourced processes, internal controls, and all the security measures you have implemented. Especially after the economic crisis, your clients expect you to comply with mandatory standards and to be transparent about how you have organised your internal controls. This is so well-established that you have had it assessed by an external professional party.
2. Convert Prospects into New Clients.
Many organisations require ISAE 3402 certification to procure your services or products. Any organisation subject to statutory audit obligations must include all its processes within the scope of this audit, including outsourced processes. An ISAE 3402 report is the tool you can use as a service organisation (the outsourced party) to demonstrate controlled processes. This means that all publicly listed companies, financial institutions, and even medium-sized legal entities outsourcing processes will (soon) require ISAE 3402 reports from their suppliers. Government demand (including municipalities) has also been increasing significantly recently.
3. Create a Level Playing Field with Your Competitors.
Without an ISAE 3402 report, you risk losing clients to your competitors. If your competitors have an ISAE 3402 report or at least an ISO 27001 report, they have an advantage in tenders or requests for proposals for your services. Many tender procedures state that ‘certification’ is required. More professional parties specifically request ISAE 3402 or an ISO certification.
4. Comply with the Highest Standards and Best Practices.
The ISAE 3402 report is a powerful tool. It demonstrates compliance with the leading global standard for internal control. ISAE 3402 is issued by the International Federation of Accountants (IFAC). National accounting organisations, such as the Royal Netherlands Institute of Chartered Accountants (NBA) in the Netherlands, have integrated this standard into national regulations. This means that with an ISAE 3402 report, you not only meet high national requirements but also internationally prove that you are ‘in control’.
5. Lead in Your Market.
By undertaking an ISAE 3402 audit and producing the report, you signal that you take security and internal control seriously. You have your organisation under control; you identify risks, have measures in place to manage these risks, and continuously monitor them. Many of your competitors may not have their processes as well-structured as you do and may not be able to demonstrate this through an independent assessment of their internal controls by a legally recognised certifying accountant.
