From an audit perspective, what is the most critical document to review when engaging a new IT service provider?

When engaging a new IT service provider, reviewing the proposed service level agreement (SLA) is crucial from an audit perspective because the SLA outlines the specific services to be provided, performance metrics, responsibilities, and penalties for non-compliance. This document sets the expectations for the relationship between the organization and the service provider, establishing guidelines for service delivery and accountability.

The SLA serves as a foundational contract that defines acceptable performance levels, response times, availability guarantees, and the criteria by which services will be evaluated. It plays a vital role in risk management, ensuring that the organization can measure and enforce compliance with the agreed-upon standards.

In contrast, while references, physical security, and background checks provide important insights into the service provider's reliability, security posture, and workforce integrity, they do not directly govern the operational relationship or the quality of services rendered. The proposed SLA is the document that ultimately stipulates how these factors will be managed and ensures that both parties have a clear understanding of their obligations and rights.