CISA Exam: Best Practices for Assessing Outsourced Data Processing Services

Determining Service Provider Alignment with Organization Objectives

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Question

An organization has outsourced its data processing function to a service provider.

Which of the following would BEST determine whether the service provider continues to meet the organization's objectives?

Answers

Explanations

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A. B. C. D.

A.

The correct answer is D. Review of performance against service level agreements (SLAs).

When an organization outsources its data processing function to a service provider, it is important to ensure that the provider continues to meet the organization's objectives. The provider is typically contracted to perform specific tasks and meet certain requirements, such as data security, availability, and performance. The organization should continuously monitor the provider's performance against the agreed-upon service level agreements (SLAs) to determine whether the provider is meeting the objectives.

Periodic audits of controls by an independent auditor (A) are important, but they may not provide sufficient information to determine whether the service provider is meeting the organization's objectives. Audits may only be conducted periodically, whereas SLAs are monitored continuously. Furthermore, audits may only focus on certain controls and not provide a comprehensive picture of the provider's overall performance.

Adequacy of the service provider's insurance (B) is important, but it is not directly related to the provider's ability to meet the organization's objectives. Insurance may provide some protection against financial losses in the event of a breach or outage, but it does not guarantee that the provider is meeting the organization's performance requirements.

Assessment of the personnel training processes of the provider (C) is important for ensuring that the provider's staff is properly trained and qualified to perform the required tasks. However, it may not provide direct evidence that the provider is meeting the organization's objectives. Properly trained personnel are necessary but may not be sufficient to ensure that the provider is meeting the organization's objectives.

Therefore, the best way to determine whether the service provider continues to meet the organization's objectives is to review the provider's performance against the SLAs. This ensures that the provider is meeting the organization's requirements for data processing and helps identify any areas where the provider may need to improve its performance.