Internal and external forces such as globalization, global
interconnectivity, automation, and other technological advancements are
making today's supply chains highly sophisticated and complex. For
organizations that produce, manufacture or distribute products, there's
often a high level of interdependence and connectivity with their
suppliers and their customers and business partners.
Although the interconnectedness of these organizations can be beneficial
(increased revenues, expanded market opportunities, and cost reduction),
the ability of organizations to meet their goals is often increasingly
dependent on events, processes, and controls that are not visible and
are often beyond their control - such as a supplier's controls. That's
why the demand for transparency in supply chains is now higher than ever
before, and why this is the perfect time for you to help organizations
assess their supply chain risks, evaluate the system controls within
their manufacturing, production, or distribution systems, and
communicate their supply chain management efforts to those with whom
they do business.
Accountants and financial managers can also increase the credibility of
the supply chain information communicated by the organization by
providing an opinion on the organization's supply chain efforts. This
guide enables the accountant and financial manager to examine and report
on the description of a system for manufacturing, producing and
distributing goods as well as on the controls within that system using a
dynamic, proactive, and agile approach. It will show how to conduct this
examination in accordance with the attestation standards. The guide may
also be helpful when providing readiness assessments to clients, who are
not quite ready for an examination level service and need help to get
there.
The guide also includes excerpts from the two distinct, but
complementary sets of criteria developed by the AICPA to assist
practitioners with SOC for Supply Chain engagements: the description
criteria and the 2017 trust services criteria.
