Process Consulting
SOC (Service Organization Control)
Get StartedA System and Organization Controls (SOC) 1 report is the best way to show businesses that they can trust you and that trust has been placed properly. A SOC 1 report gives an independent assessment of your control environment and gives clients and their auditors comfort that the financial data they are giving you is secure and that you are processing said financial data accurately.
A SOC 1 report was created by the American Institute of Certified Public Accountants (AICPA) and is only applicable to service organizations that provide services to clients that may affect their internal controls over financial reporting (ICFR). If you are providing services to process transactions on behalf of your clients, or for processing or control over financial data of your clients - for example payroll processing, loan servicing, management of financial accounts, etc. - to name a few, a SOC 1 report is critical.
A SOC 1 audit, simply put, is really about accountability. It illustrates that you have established and maintained a reasonable effective Internal Control environment which helps your clients meet their own financial reporting and compliance processes with less need to audit your systems for themselves.
Identify and exploit security weaknesses in your systems before attackers do with expert-led manual and automated testing.
Ensure your cloud infrastructure aligns with regulatory frameworks like ISO 27001, SOC 2, and CIS benchmarks.
Align your software development lifecycle with PCI Secure Software Standard to ensure secure design, coding, and maintenance practices that meet modern payment industry requirements.
Pursuing a SOC 1 report is more than just a compliance exercise; it is a strategic business decision. For service organizations, a SOC 1 audit report is a powerful tool for building and maintaining client relationships. When clients entrust you with their financial data, they need assurance that you are protecting it. A SOC 1 report provides that assurance, verified by an independent Certified Public Accountant (CPA).
This attestation can be a significant competitive differentiator. It demonstrates a commitment to transparency and security, helping you win new business and retain existing clients. Many companies now require their service providers to be SOC 1 compliant as part of their vendor management and due diligence processes. Without it, you may be excluded from consideration for valuable contracts.
SOC 1 Type I Report
A SOC 1 Type I report evaluates the design of your controls at a specific point in time. An auditor will assess whether your controls are suitably designed to achieve the stated control objectives as of a particular date. Think of it as a snapshot. The auditor reviews your documentation and processes to confirm that, on paper, your control environment appears effective.
A Type I report is often a good starting point for organizations new to SOC reporting. It helps establish a baseline for your control framework and demonstrates a proactive approach to security and compliance. However, it does not provide assurance that these controls have been operating effectively over a period.
SOC 1 Type II Report
A SOC 1 Type II report goes a step further. It assesses both the design and the operating effectiveness of your controls over a specified period, typically ranging from six to twelve months. The auditor doesn't just look at what your controls are supposed to do; they test them to see if they have been working as intended over time.
This type of audit report provides a much higher level of assurance to your clients and their auditors. It proves that your internal controls are not only well-designed but also consistently enforced. For this reason, a SOC 1 Type II report is the standard expectation for most clients, as it offers a more comprehensive and reliable view of your control environment.
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