SOC Reporting Services
As vendor management scrutiny intensifies, the pressure is on to demonstrate that your internal controls protect your customers’ sensitive data.
Increasingly, organizations that outsource critical functions are asking for System and Organization Control (SOC) reports to better understand the service provider’s information system and processes. However, confusion about the purpose of each reporting option have led many organizations to demand the wrong type of report.
Aprio’s mission is to help clients improve their risk management programs, providing higher quality reports with less business disruption. We can clarify your SOC reporting options and help select the structure that best supports your business needs.
SOC 1® – Reporting on Internal Controls Relevant to Financial Reporting
SOC 1 reporting relates specifically to financial reporting controls. The primary reason to execute a SOC 1 report is to prove to an external auditor that your organization’s financial reporting controls satisfy the internal control over financial report (ICFR) requirements for the entities using your service—reducing or eliminating the need for those financial auditors to perform their own tests on those controls. This report is only appropriate for organizations that provide services that directly affect their customers’ financial controls — such as medical billing, claims processing, inventory management or order fulfillment.
SOC 2® – Reporting on Operational and Compliance Controls
SOC 2 reporting provides the unique opportunity for organizations to improve their information risk management program, increase transparency into information controls, solidify vendor relationships and improve the integrity of the business.
Whereas SOC 1 was designed specifically to address risks that pertain to financial reporting, SOC 2 was designed to attest to a service organization’s controls as they relate to security, availability, processing integrity, confidentiality and privacy – the five domains that make up AICPA’s Trust Services Principles and Criteria.
Under SOC 2, service organizations and their auditors select the Trust Services Principles that are appropriate to the services they perform. That framework can be expanded to include criteria from other standards, such as HIPAA, PCI DSS, ISO 27001, EI3PA or the New York State Department of Financial Services Cybersecurity Requirements. As a result, a SOC 2 report is highly flexible and can be tailored to address myriad specific requirements in areas such as government, healthcare, title agents and financial services.
Aprio’s SOC reports provide the assurance that your customers and their financial auditors need, standing up to the highest level of scrutiny.
We also make SOC reporting easier to achieve. We help you prevent disruptive pre-deadline “compliance spikes,” pacing the work so that your team has adequate time to remediate issues. Clients with multiple vendor and compliance reporting requirements appreciate our pragmatic approach that unifies the collection and cataloging of control evidence, simplifying the reporting process and avoiding audit fatigue.
To learn more about SOC reporting and Aprio’s Information Assurance Services, contact:
Dan Schroeder | Partner-in-Charge, Information Assurance Services
firstname.lastname@example.org | (770) 353-8379