A right-to-audit clause in a contract allows an organization to review and assess the operations, controls, and security measures of a third-party service provider (such as payroll service providers). Providing "read-only" functionalities supports this clause by enabling internal auditors to access and review relevant data without modifying it.
Read-only access allows auditors to verify transactions, data integrity, and compliance without affecting system operations.
This ensures that internal audit functions can review third-party controls without interference, supporting contractual audit rights.
The IIA’s Standard 2070 – External Service Provider Relationships states that organizations should retain the right to audit outsourced functions to ensure compliance with internal control policies.
B. This will enforce robust risk assessment practices → Incorrect. While read-only access can contribute to risk assessment, it does not directly enforce risk management policies.
C. This will address cybersecurity considerations and concerns. → Incorrect. Cybersecurity concerns involve encryption, authentication, and intrusion detection—not just read-only access.
D. This will enhance the third party's ability to apply data analytics → Incorrect. The request is for audit purposes, not to improve the third party’s analytics capabilities.
IIA’s Global Technology Audit Guide (GTAG) 7: IT Outsourcing recommends a right-to-audit clause in third-party agreements.
IIA Standard 1312 emphasizes that external audits should have transparent access to outsourced functions.
ISACA's COBIT Framework highlights the importance of audit access in managing third-party risks.
Why Option A is Correct?Explanation of the Other Options:IIA References & Best Practices:Thus, the correct answer is A. This will support execution of the right-to-audit clause.
