The AICPA SOC standards are as follows:

Trust Services Criteria (TSC): The TSC provides a framework for evaluating a service organization’s controls related to security, availability, processing integrity, confidentiality, and privacy. These criteria are aligned with the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework, encompassing:

• Control Environment: Establishing a foundation for internal control through governance and organizational structure.
• Communication and Information: Ensuring relevant information is identified, captured, and communicated effectively.
• Risk Assessment: Identifying and analyzing risks to achieving the organization’s objectives.
• Monitoring Activities: Ongoing evaluations to ascertain the effectiveness of internal controls.
• Control Activities: Policies and procedures that help ensure management directives are carried out.

These criteria guide organizations in designing and implementing effective controls to manage and mitigate risks associated with their services.

Attestation Standards: SOC examinations are conducted in accordance with the AICPA’s attestation standards, specifically:

• AT-C Section 320: “Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting” for SOC 1 engagements.
• AT-C Sections 105 and 205: General attestation standards applicable to all SOC engagements, outlining the principles and procedures for performing and reporting on attestation engagements.

These standards make sure that SOC reports are performed with consistency, reliability, and in accordance with professional guidelines, providing assurance to stakeholders about the effectiveness of an organization’s controls.

Adherence to relevant SOC criteria enables service organizations to effectively demonstrate their commitment to robust internal controls and gain the trust of clients and stakeholders.

Achieving SOC compliance is a strategic move that significantly enhances client trust. Here’s how:

• Demonstrating Commitment to Security: SOC compliance requires organizations to implement robust controls across key areas: security, availability, processing integrity, confidentiality, and privacy. Adhering to these Trust Services Criteria showcases your dedication to protecting client data and maintaining system reliability. This proactive stance reassures clients that their sensitive information is handled with the utmost care.
• Enhancing Transparency: Undergoing a SOC audit involves an independent assessment of your internal controls. Sharing the resulting SOC report with clients provides them with clear insights into your data handling practices and security measures. This openness fosters a culture of transparency, enabling clients to make informed decisions about partnering with your organization.
• Building Credibility: SOC compliance is recognized industry-wide as a data security and operational excellence benchmark. This certification signals to clients that your organization meets rigorous standards, enhancing your credibility. This recognition can be a decisive factor for clients when selecting service providers, as it differentiates you from competitors lacking such credentials.
• Streamlining Third-Party Risk Assessments: Clients often conduct thorough due diligence on their vendors to mitigate risks associated with outsourcing services. A SOC report simplifies this process by providing verified evidence of your robust internal controls. This not only accelerates the onboarding process but also instills confidence in clients that their data is secure, thereby strengthening the client-provider relationship.

This process serves as a powerful tool to build and enhance client trust. It demonstrates your unwavering commitment to security, fosters transparency, bolsters credibility, and eases client concerns regarding third-party risks.

With SOC compliance, your organization not only safeguards data but also cultivates stronger, trust-based client relationships.

In the realm of SOC reporting, Type I and Type II reports serve distinct purposes, each offering different levels of assurance regarding an organization’s control environment.

Type I Report

• Scope: Evaluates the design and implementation of controls at a specific point in time.
• Purpose: Assesses whether the controls are suitably designed to achieve their intended objectives as of a particular date.
• Ideal For: Organizations seeking an initial assessment of their control design and implementation.
• Cost and Effort: Generally less intensive and less costly than a Type II report, as it examines controls at a single point in time.

Type II Report

• Scope: Assesses the operating effectiveness of controls over a defined period, typically ranging from six to twelve months.
• Purpose: Evaluates not only the design and implementation but also the consistent operation of controls throughout the specified period.
• Ideal For: Organizations aiming to provide comprehensive assurance to clients and stakeholders about the sustained effectiveness of their controls.
• Cost and Effort: More rigorous and costly than a Type I report, as it involves continuous evaluation and testing of controls over time.

While a Type I report offers a snapshot of an organization’s control design at a specific moment, a Type II report provides an assessment, demonstrating how effectively those controls operate over time. Choosing between the two depends on the level of assurance required and the specific needs of stakeholders.

Embarking on the journey to obtain a SOC certification with Aprio involves a structured process designed to make sure your organization’s controls meet the compliance standards. Here’s an overview of the steps involved:

Initial Consultation and Planning: Consult with Aprio’s Information Assurance Services team. During this phase, Aprio consultants will discuss your organization’s specific needs, objectives, and the appropriate SOC report type (SOC 1, SOC 2, or SOC 3) that aligns with your services and client requirements.

Readiness Assessment: Aprio conducts a comprehensive readiness assessment to identify any gaps in your current control environment. This involves evaluating existing policies, procedures, and controls against the relevant Trust Services Criteria. The assessment results in a detailed action plan outlining necessary improvements to achieve compliance.

Remediation and Implementation: Based on the SOC readiness assessment, your organization will implement the recommended controls and address identified gaps. Aprio provides guidance throughout this process to make sure that all controls are effectively designed and operational.

“Test-of-One” Evaluation: Before the formal audit, Aprio performs a “Test-of-One,” simulating audit procedures to verify that your controls are functioning as intended. This step helps identify any issues that need correction prior to the official examination, reducing the risk of findings during the actual audit.

Formal SOC Examination: Aprio’s auditors conduct the official SOC examination, assessing the design and operating effectiveness of your controls over a specified period (for Type II reports) or at a specific point in time (for Type I reports). The audit includes detailed testing and evaluation to maintain compliance.

Report Issuance: Upon successful completion of the audit, Aprio issues the SOC report, providing an independent attestation of your organization’s control environment. This report can be shared with clients and stakeholders to demonstrate your commitment to security and operational excellence.

Throughout this process, Aprio leverages standardized methodologies and proprietary technology to deliver efficient and high-quality reporting. With Aprio, your organization achieves the right SOC reporting to foster trust and support business growth.

In addition to traditional SOC reporting, Aprio offers a range of attestation services to help organizations demonstrate compliance and build stakeholder trust. These services include:

Agreed Upon Procedures (AUP) –A company will typically work with another company to come up with a set of “agreed upon procedures” that the auditor will perform. These procedures can cover most topics as long as the procedures can be objectively performed by the auditor. An AUP is often used to demonstrate compliance over a scope smaller or different than what might be covered by a particular SOC report.

SOC for Supply Chain – SOC for Supply Chain is the most recent SOC reporting option. This report is designed to provide relevant information to organizations up and down the supply chain and is specifically designed for companies seeking to manage supply chain risks. This report is not limited to service providers and can be adopted by organizations up and down the supply chain.

SOC for Cybersecurity – SOC for Cybersecurity is another SOC reporting option. This report includes a description of your cybersecurity risk management program. This report is not limited to service providers and can be adopted by any organization, even to report just internally. SOC for Cybersecurity includes the SOC 2 framework in addition to other more in-depth criteria.