What does data residency mean for audit firms using AI?
Data residency describes the country or region in which data is stored. For audit firms, it can affect client confidentiality commitments, sector requirements, procurement decisions and the expectations of local regulators or network firms.
Residency is only one part of the picture. Firms should also understand where data is processed, which subprocessors can access it, how support access works and whether cross-border transfers occur. A statement that data is “hosted locally” should be tested against the full service architecture.
The right requirement depends on the client base. A firm auditing regulated entities or public-sector organisations may need more specific hosting arrangements than a firm serving less restricted owner-managed businesses. International networks may need different regions while preserving a common methodology.
Platformed offers regional hosting options to support local requirements. The implementation should record which region applies, which clients require additional restrictions and how the firm communicates the arrangement to engagement teams and clients.
References: Platformed customer assurance · Platformed Trust Center