ACCA Strategic Professional · Strategic Business Leader · Finance transformation
Corvil Ltd is moving its finance systems to a cloud-based ERP provided by a third party. The audit committee is concerned about governance. Which consideration is most specific to this move?
The most specific consideration is assessing the cloud provider's controls over data security and availability, such as via an independent assurance report. Management stays accountable for outsourced finance data, so it needs evidence the provider's controls operate effectively.
- AAssessing the provider's controls over data security and availability, for example through an independent assurance reportCorrect
- BWhether the company should adopt IFRS for revenue recognition
- CThe level of dividend cover for shareholders
- DThe number of non-executive directors on the board
Explanation
Moving to a cloud provider outsources processing and hosting, so management remains accountable but must obtain assurance over the provider's security, availability and controls, often through independent service organisation reports. The other options are not specific to cloud adoption.
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