Which of the following is an example of a 'Complementary User Entity Control' (CUEC) that might be listed in a payroll service provider's SOC 1® report?

Answer options:

The service provider backs up the database nightly.

The service provider performs background checks on its employees.

The service provider encrypts data in transit.

The user entity is responsible for notifying the service provider of employee terminations in a timely manner.

How to approach this question

Identify the control that the CUSTOMER (User Entity) must perform.

Full Answer

D.The user entity is responsible for notifying the service provider of employee terminations in a timely manner.✓ Correct

CUECs are controls that the service organization assumes, in the design of its system, will be implemented by user entities to achieve the control objectives. Timely notification of changes is a classic CUEC.

Common mistakes

Thinking the report only lists the provider's controls.

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