Third Party Reporting at a Crossroads – time for reflection and quality enhancement

With growing digitalization, stricter supply-chain obligations and dependencies, and heightened attention to cybersecurity, Third Party reporting stands at the same crossroads as a lot of economies: only by investing in quality, professionalisation, and future‑proof assurance can societal trust be maintained.

Strategic importance of high‑quality assurance

Third Party reports are no longer just compliance attachments. They form the backbone of trust within digital ecosystems. Clients, regulators, and chain partners base their risk assessments partly on the quality of these reports.

In recent years, organizations have become increasingly dependent on complex IT chains, cloud services, AI‑driven solutions, and data‑intensive processes. As a result, the role of assurance is shifting from looking back to proactive risk management and forward‑looking oversight.

At the same time, the sector faces challenging preconditions:

• New legislation (e.g., NIS2, DORA, CRA) raises the bar for organizational control and reporting.
• Shortages of specialised IT talent make internal assurance more difficult.
• Digitalization and AI applications require auditors who not only assess controls but also understand how these technologies change the risk landscape and/or support effective control.

In this context, choosing the right auditor is of strategic importance.

Investing in professionalization and impact

Just as AI labs and digital infrastructure determine the technological strength of a country or region, the quality of Third Party reporting can only improve when organizations invest in:

• modernisation of control frameworks,
• in‑depth risk analyses of cloud and AI chains,
• clear governance and accountability,
• audit processes that align with agile and digital work models.

A growing number of organizations use this moment — the completion of the current assurance cycle — to ask themselves: “Are we ready for the next step?”

Bottlenecks and risks: complexity, chain dependency, and data intensity

The quality and reliability of Third Party reports are increasingly influenced by several rapidly developing challenges:

Chain complexity

More processes are outsourced to specialised providers. Risks are no longer contained within a single organization but spread across a network of service providers. This increases the need for an auditor with oversight and the ability to understand entire chains.

AI‑driven processes

While AI increases efficiency, it also introduces new risks: data quality, model bias, traceability, and energy impact. Auditors must be able to assess these technologies for both reliability and governance.

Increasing stakeholder expectations

Clients demand deeper analysis, regulators expect consistency, and partners want assurance that goes beyond controls alone: trust in the entire digital operation.

Why choose Forvis Mazars now

In this context, Forvis Mazars sets itself apart through an approach designed for the digital future:

• Substantive depth in IT and AI assurance – with specialists who not only assess IT realities but also understand how modern digital chains operate.
• International reach, local engagement – essential for organizations with multiple service providers and complex ecosystems.
• Clear, strategically relevant reporting – going beyond standard requirements by providing insights into risks, dependencies, and areas for improvement.
• Efficient, modern audit methodology – minimizing the burden on your organization while increasing the predictability and transparency of the process.

In conclusion

Now that current Third Party engagements are being finalized, this is the moment for organizations to reflect: Is our auditor ready for the wave of digitalization and AI that will define the coming years?

Forvis Mazars IT Audit & Assurance is ready to support organizations with assurance that not only meets standards but builds trust for the future. We would be pleased to explore how we can strengthen your organization in this area.