What are SOC Audit Reports and Why Do You Need SOC Readiness Assessments?June 3, 2021
Many service organizations receive requests from their clients for a System and Organization Controls (SOC) report. However, it is often difficult to comply with SOC guidelines or determine if you are ready for a SOC audit.
As a service organization, you are responsible for certain elements of processing information on your client’s behalf. A SOC report enables you to demonstrate to your clients that your organization is a safe and secure place for them to have their data and information stored and processed.
SOC engagements are a suite of services outlined by the American Institute of CPAs that ensure that service organizations implement and enforce strict information security policies and procedures pertaining to internal controls, and that companies understand and address financial systems risks.
There are four main types of SOC reports: SOC 1, SOC 2, SOC 3 and SOC for Cybersecurity. Each type is comprised of the specific elements listed below.
It can be difficult to determine which reports are applicable to your organization. For instance, it is important to consider whether your organization’s controls would affect your client’s internal controls over financial reporting when determining between SOC 1 and 2 reports.
How ADRS can help with your preparation for a SOC engagement
To prepare for a SOC engagement, it is beneficial to conduct a Readiness Assessment. These assessments are designed to assist your organization in determining its readiness for a SOC engagement and provides management with a roadmap to a successful SOC engagement.
To prepare and position your organization for success, Anchin Digital Risk Solutions (ADRS) can help support your organization’s Readiness Assessment process through conducting a gap analysis of existing controls versus SOC requirements, providing relevant and practical remediation recommendations and providing support in implementing those recommendations that could include control design, policy and procedure documentation, and training programs. By documenting your policies and procedures, you may also have the opportunity to address any other regulatory compliance concerns you may have.