A Service Organization Control Report, or SOC, is intended to assist organizations that provide services to other entities. Acquiring a SOC report can be a valuable investment for an organization. While it is not legally required to share a SOC report with a client, if they ask you to provide one, it can be a significant opportunity to distinguish yourself in your industry.
By marketing a SOC report an organization can:
- Differentiate themselves from the competition
- Demonstrate that they are a trusted partner
- Acquire and sustain customers
- Position themselves as an industry partner
Reviewing a SOC report is a great way to confirm that an organization or business is abiding by certain best practices and can reduce significant error or data loss. This process can be helpful for gaining trust between a business and the company it outsources a certain function to (such as payroll).
If you have a strong risk management and/or compliance program and strong controls, having an SOC report can validate that the proper controls are in place. Service organizations often find themselves subject to internal or external auditors. By obtaining a SOC report, audit time and effort can be significantly reduced.
A SOC report can only be issued through a licensed CPA firm. Contact an SLK CPA to learn more.