Audit Offshoring Series Part 3: Everything You Need to Know About Data Sharing & Security

There’s a thin line between innovation and risk. As an owner or partner of a progressive accountancy and audit firm, we’re sure you know the difference between the two. Yet, even the industry leaders sometimes fail to strike the right balance.

One of the hottest topics on this see-saw is audit outsourcing, a practice that promises efficiency and cost savings but also brings along the ever-present worry of data security. After all, it’s not just any data we’re talking about—this is sensitive financial information that requires the highest level of protection.

So, how can you ensure that your clients’ data remains as secure as the Crown Jewels when transferred halfway across the globe?

We’re here to ease your worries about data security in audit service offshoring. This blog will shed light on how top outsourcing providers go above and beyond to keep your data safe. Let’s dive into the world of outsourced audits and explore everything you must know about data sharing and security.

Why Data Security is a Big Deal in Audit Offshoring

The mere thought of shipping off your client’s financials to a team abroad can be nerve-wracking. What if the data gets lost in the ether, intercepted by cyber crooks, or worse, ends up in the hands of your competitors? These are legitimate concerns, but they shouldn’t paralyse you from exploring the benefits of outsourcing.

Top-notch audit support services providers are acutely aware of these concerns and have developed robust security frameworks to address them. When done right, offshore audit doesn’t have to feel like sending your data into the unknown—it can be as secure as Fort Knox.

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How Secure is Data Sharing in Audit Offshoring?

First things first, let’s talk about how data is shared. Imagine this as a highly secure version of passing a note in class—one where the note is encrypted, locked in a safe, and delivered by a security guard.

The journey of your data starts from your firm, travels across secure channels, and reaches the outsourcing provider, all while being shielded from prying eyes.

Here’s how it works in practice:

• Encryption: Before your data even leaves your office, it’s encrypted. This means it’s turned into an indecipherable code, and only someone with the right key can unlock it. Think of it as scrambling the data so thoroughly that anyone without the key would need to solve a Rubik’s Cube in the dark to make sense of it.
• Secure File Transfer Protocols (SFTP): Once encrypted, data is sent through secure file transfer protocols (SFTP). These protocols ensure that the data travels through a secure tunnel, making it almost impossible for anyone to intercept or tamper with it. It’s like sending your data in a bulletproof car with tinted windows—safe and discreet.
• Access Controls: On the receiving end, the outsourcing provider employs strict access controls. Only authorised personnel who have been vetted thoroughly can access the data. This is like having a bouncer at the door, only letting in those who are on the list.

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What Security Standards Should You Look For?

Not all outsourcing providers are created equal, especially when it comes to security. As you consider outsourcing audit support services, it’s crucial to know the standards that should be in place to ensure data privacy. Here are the key ones:

• ISO 27001: This is the gold standard for information security management. If an outsourcing provider has this certification, it means they’ve implemented a rigorous system for managing sensitive company information, ensuring it remains confidential and protected from breaches.
• GDPR Compliance: As a UK-based firm, you are familiar about the General Data Protection Regulation (GDPR). Any outsourcing provider you work with should be fully compliant with GDPR, which includes protecting personal data and ensuring it is not misused. GDPR compliance is like a strict headmaster making sure everyone follows the rules.
• Regular Security Audits: op outsourcing providers regularly conduct security audits to identify and rectify vulnerabilities. These audits are like health checkups, ensuring everything is in tip-top shape and there are no weak spots that could be exploited.
• Data Masking: Some providers go the extra mile by using data masking techniques. This means that even within the provider’s own systems, the data is anonymised, making it useless to anyone who might get unauthorised access.
• Two-Factor Authentication: Need an extra layer of security when accessing data? This is the key. Even if someone gets hold of a password, they won’t be able to access the data without the second factor, such as a code sent to a mobile device. It’s like needing both a key and a fingerprint to open the door.

Commonly Asked Questions

Let’s tackle some of the questions you might have buzzing around your head:

Q: What if my data gets breached?

A: Top outsourcing providers have incident response plans in place. In the unlikely event of a breach, these plans are activated immediately to minimise damage and prevent further loss.

Q: How do I know my data isn’t being misused?

A: Reputable providers offer detailed audit trails that track every access and action taken on your data. You can review these logs to ensure that nothing fishy is going on.

Q: Can I still maintain control over my data?

A: Absolutely. You can set permissions and decide the accesses. Many providers also offer dashboards where you can monitor data access in real time.

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Final Thoughts

Outsourcing audit support doesn’t have to be a leap into the unknown. By partnering with the right provider, one that adheres to the highest cybersecurity standards, you can enjoy the benefits of offshoring while keeping your data secure.

The key is to do your due diligence—ask the right questions, verify certifications, and understand the security measures in place.

With the right safeguards, you’ll find that audit offshoring can be a smooth, secure, and highly rewarding experience for your firm. So, while the idea of sending your data across borders might seem daunting at first, rest assured that with the proper precautions, your data will be as secure as houses.

And who knows, you might even find yourself sleeping better at night knowing your data is in safe hands—thousands of miles away, but just as secure as if it were next door.

Ready to take the first step? Call us at +44 208 146 0808 or email us at [email protected] to speak to an expert.