SOC 1
SERVICES
- Scott Sarbey, Managing Partner
WHAT ARE SOC 1 REPORTS?
A Statement on Standards for Attestation Engagements 18 (SSAE 18), also referred to as a Service Organization Control Report (“SOC”) 1, reviews the controls of a service organization as they relate to financial transactions conducted on behalf of the service organization’s clients. Although the focus of a SOC 1 report is on internal controls over financial reporting, general controls related to information technology are also included in the review.
SOC 1 SERVICES
- David Watson, CFO Medical Facilities Corporation
WHAT ARE SOC 1 REPORTS?
A Statement on Standards for Attestation Engagements 18 (SSAE 18), also referred to as a Service Organization Control Report (“SOC”) 1, reviews the controls of a service organization as they relate to financial transactions conducted on behalf of the service organization’s clients. Although the focus of a SOC 1 report is on internal controls over financial reporting, general controls related to information technology are also included in the review.
DOES MY ORGANIZATION NEED A SOC 1 REPORT?
If your organization provides a service that could impact your customer’s internal controls over financial reporting (“ICFR”), there is value in obtaining a SOC 1 report – in fact, it may be required to secure or retain business with customers who use the services.
Even if not explicitly required by user entities, a SOC 1 Report can provide you a competitive edge in the market, help you satisfy compliance requirements, and provide you with an effective tool for communicating your control commitments to your internal and external stakeholders.
A successfully completed SOC 1 examination can provide assurance and confidence that your internal control environment, activities, and monitoring are adequately designed and operating effectively to safeguard your customer’s financial transactions and data.
WHAT ARE THE DIFFERENT TYPES OF SOC 1 REPORTS?
Type 1 reports on the fairness of the presentation of management’s description of the service organization’s system and the suitability of the design of the controls to achieve the related control objectives included in the description as of a specified date.
Type 2 reports on the fairness of the presentation of management’s description of the service organization’s system and the suitability of the design and operating effectiveness of the controls to achieve the related control objectives included in the description throughout a specified period.
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