Third-Party Assurance

Third-party assurance provides stakeholders with independent evidence that an organization's claims about its security and compliance practices are substantiated. Rather than relying solely on a vendor's self-reported security posture, customers can examine independently verified assessments. The most common forms of third-party assurance in the technology sector include SOC 2 Type I and Type II reports (examining security, availability, processing integrity, confidentiality, and/or privacy controls), ISO 27001 certification (demonstrating a conforming information security management system), penetration test reports (validating technical security), and industry-specific certifications (HIPAA, PCI DSS, FedRAMP). Each provides a different type and depth of assurance.

Third-party assurance has become a market expectation for technology companies, particularly those serving enterprise customers. ISO 27001 Annex A controls on supplier management (A.5.19-A.5.23) require organizations to assess the security of their suppliers — reviewing third-party assurance reports is one of the most efficient ways to accomplish this. SOC 2 reports specifically address how organizations interact with and depend on sub-service organizations, often referencing the sub-service organization's own assurance reports. NIS2 requires essential entities to assess the security practices of their suppliers, and third-party assurance reports provide standardized evidence for these assessments. In technology due diligence, the availability of third-party assurance is a significant factor in evaluating an organization's credibility.

For organizations providing third-party assurance, the key decision is which frameworks to pursue based on customer expectations, geographic market, industry requirements, and organizational maturity. SOC 2 is the dominant standard in North American markets, while ISO 27001 has broader global recognition. Many organizations pursue both. For organizations consuming third-party assurance, it is important to understand what each type of assurance actually covers and what it does not — a clean SOC 2 report does not guarantee that no breaches will occur, but it does provide evidence that the organization has designed and operated security controls. Consumers should review the scope, exclusions, and any qualified opinions in assurance reports, and supplement them with their own vendor risk assessment activities where the assurance does not cover all areas of concern.