Cloud services assurances.

• Position: CAMICO Insurance tip of the month

When Using cloud services to process confidential client information, the CPA is responsible for ensuring confidentiality and should perform the necessary due diligence to address any potential threats to compliance with the "Confidential Client Information Rule."

Before disclosing confidential information to a third-party service provider, a CPA should do one of the following:

* Enter into a contractual agreement with the third-party service provider to maintain the confidentiality of the client information and ensure that appropriate procedures/safeguards are in place to protect such information.

* Obtain specific consent from the client before disclosing confidential information to the third-party service provider.

Cloud services providers should be willing to provide several types of assurances to CPAs regarding the...