What should an IS auditor determine first when reviewing an outsourced IT service?

In the context of reviewing an outsourced IT service, determining the contractual warranties that support business needs is crucial for the IS auditor. These warranties outline the obligations of the service provider, ensuring that they align with the organization’s requirements and expectations. By understanding these warranties, the auditor can assess whether the service provider is capable of delivering on key aspects that the business relies on, such as availability, security, and compliance with regulatory requirements.

This assessment provides insights into potential risks associated with the outsourcing relationship and the extent to which the service can be relied upon to meet business objectives. Furthermore, contractual warranties can inform decisions on how to address issues that may arise during the service period.

While other components, such as the audit clause in contracts, service level agreements (SLAs), and termination support guarantees are also important, they generally serve as part of a broader framework for ensuring the effectiveness and reliability of outsourced services. The contractual warranties are foundational because they directly reflect the commitments made by the vendor to support the organization's critical needs, making them a primary consideration for an IS auditor when starting the review.