What should an IS auditor assess regarding the management of external IT service providers?

The primary focus of an IS auditor when managing external IT service providers is to ensure that the services delivered align with the terms outlined in the contractual agreements. This involves evaluating whether the service provider meets specified standards, performance levels, and compliance requirements as agreed upon.

This assessment is critical because it directly impacts the organization's operations, risk management, and overall service quality. A thorough review would typically include examining service level agreements (SLAs), compliance with regulatory standards, and confirming that the deliverables meet the expectations set by the organization. By ensuring that services meet these contractual agreements, the auditor can provide assurance to stakeholders that the organization is receiving the value it paid for and mitigate potential risks associated with outsourcing IT services.

While aspects like performance metrics, subcontracting practices, and customer satisfaction are important components of the overall vendor management strategy, they support the broader objective of verifying that the services are in line with the contractual terms. Thus, focusing on the assurance that services meet contractual agreements provides the foundational element necessary for a successful evaluation of third-party provider performance.