AICPA launches new supply chain risk management reporting framework
- Published: Friday, 13 March 2020 10:33
To help manufacturers, producers, distribution companies and their customers and business partners identify, assess and address supply chain risks, the American Institute of CPAs (AICPA) has launched ‘SOC for Supply Chain’, a new risk reporting framework.
The SOC for Supply Chain framework is a market-driven, flexible and voluntary framework for organizations to communicate certain information about their manufacturing, production or distribution system and the effectiveness of controls that mitigate supply chain risks.
“Today’s supply chains are highly sophisticated and complex, there is often a high level of interdependence and connectivity between them, which increases an organization’s vulnerability to risk,” said Amy Pawlicki, AICPA Vice President – Assurance and Advisory Innovation. “Our new SOC for Supply Chain framework can help an organization assess risk, understand the effectiveness of its controls and identify shortfalls.”
The introduction of this new framework provides an opportunity for organizations to have an examination engagement performed on their manufacturing, production or distribution system. This type of audit provides a CPA’s opinion on the organization’s description of the system it uses to manufacture, produce or distribute products and an opinion on the effectiveness of the controls within that system.