If you are a service provider, the needs of your client base are changing and evolving as regulatory requirements grow more strict and complex. In addition to the services that you provide your clients, several may require that you demonstrate sufficient and effective control over their data and the systems that store their data. SOC reports provide service organizations an opportunity to affirm the design and effectiveness of their internal control to all of their clients, instead of individually addressing each client’s specific questions and requirements. These reports will give your customers assurance that you are processing and storing their information effectively, safely, and securely. The primary reasons that service organizations want a SOC report are:
- To identify and manage risk better
- To protect customer information and financial resources
- To assist clients in their audit objectives
- To satisfy customer contractual requirements
- To stand out as a leader in your service industry
Whitley Penn can help your company by providing audit services for each type of SOC report:
Prepared in accordance with Statement on Standards for Attestation Engagements (SSAE) No. 18, SOC 1 reports are specifically intended to address your impact on your clients’ internal control over financial reporting. A SOC 1 examination allows you to demonstrate to your clients and their auditors that your internal control over their financial data is effective and in compliance with laws and regulations, such as Sarbanes-Oxley 404.
Prepared in accordance with AT-C 205, SOC 2 reports provide your clients information on your controls over security, availability, processing integrity, confidentiality and privacy (Trust Services Criteria). With these reports, you can assure your clients that their information is safe in your hands and that you are in compliance with service-level agreements and regulatory requirements, such as the Health Insurance Portability and Accountability Act (HIPAA) and the General Data Protection Regulation (GDPR).