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January 2010 » Is Outsourced Data Secure?
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Renu Desai, PhD, MBA, CA, BCOM, and Robert W. McGee, JD, DSc, CPA, CMA, CIA, CertIFR, CertIA
There has been considerable debate over whether companies can ensure data security and privacy when they outsource services to offshore providers. U.S. laws that protect information and safeguard privacy do not have extraterritorial jurisdiction, which means that, as off-shoring proliferates, U.S. corporations are becoming increasingly dependent on foreign laws to protect their interests. The outsourcing and offshoring of financial and professional services have raised ethical questions regarding integrity, objectivity, disclosure, and client confidentiality; for example, as laid out by Steven Mintz in “The Ethical Dilemmas of Outsourcing” (The CPA Journal, March 2004).
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