Beachwood Sparks Company, a non- public company that supplies apparel to retail stores, recently has implemented a new information system. How-ever, during system development and implementation, the company experienced a great deal of turnover in personnel involved with designing and implementing the system. Consequently, the company’s board of directors is concerned about whether the system is reliable. It has heard of an assurance service called SysTrust but would like to know more about it before discussing it with its CPA firm.

Required:
a. What types of assurances does a SysTrust examination provide? What are the main principles underlying a reliable system that a SysTrust examination considers?
b. What special skills does a CPA undertaking a SysTrust examination require?
c. Beachwood’s board of directors is wondering whether any of its constituents would be interested in the SysTrust report. For example, the company is interested in renewing its business interruption insurance, winning business from new retailers, and making itself attractive as a takeover target. Describe how an unqualified SysTrust report would benefit Beachwood from the point of view of the insurance company, potential customers, and potential buyers of the company.