Key Takeaways
ITGCs are the Foundation for Financial Reporting: IT General Controls are the core technical processes that support the integrity of systems which may impact a client’s financial statements. Effective ITGCs ensure that application controls over data processing are reliable.
Four Key Control Pillars: The controls cover four broad areas: Access Management (logical and physical access to systems and data centers), Change Management (structured process for software and infrastructure modifications), System Operations (monitoring, backup, and recovery), and Governance (control environment and risk assessment).
Comprehensive Access Management: Access controls are split into Physical (securing server locations/data centers) and Logical (managing user accounts, privileged access, passwords, and network infrastructure like firewalls and VPNs).
Understanding SOC 1®* IT General Controls
If you’re ready to learn about SOC 1®* IT General Controls, you are in the right place! SOC* reporting doesn’t have to be a mystery. Let’s break down what these controls are and how they relate to your business.
What is a SOC 1®* Report?
A SOC 1® (Systems and Organization Control) report examines the internal controls your organization has in place in regard to systems that could impact your client’s financial reporting. A SOC 1® assessment is meant to provide a third-party opinion on the internal controls you have in place and how they may impact your clients.
Speak to a Compliance Specialist.
SOC 1®* IT General Controls
The IT General Controls are only one part of a SOC 1® assessment. IT general controls analyzed by a SOC 1® report typically include, but are not limited to:
- Control Environment & Risk Assessment – controls around organization structure; policies and acknowledgements; employee background checks; management meetings/risk assessment
- Physical Access – controls around physical access (understanding if servers are onsite or if third-party data centers are used)
- Logical Access & Security – controls around logical access granted, modified, and removed, as well as privileged; passwords; websites; infrastructure (firewalls, SFTP, VPN, AV)
- System Monitoring – controls around monitoring software and subservice organization monitoring, if applicable
- System Change Management – controls around process for internally-developed software (authorization, testing, approval, segregation of duties, source code); patching; infrastructure changes
- Backup and Recovery – controls around the backup process (configurations, alerts, logs)
Choose Auditwerx for SOC 1®*
When it comes to SOC 1®, Auditwerx has the industry expertise you need to succeed. Our team of knowledgeable IT assessors has completed over 2,500 compliance assessments since 2005. If you are ready to discuss your compliance needs, contact us today.
FAQs
What is the main purpose of IT General Controls within a SOC 1® engagement?
The primary purpose of IT General Controls (ITGCs) in a SOC 1® report is to ensure the integrity and security of the IT systems that process data. This is critical because the reliability of a client’s financial information is directly dependent on the correct functioning of these underlying systems.
Which four main categories do ITGCs cover in a security review?
ITGCs typically fall into four essential security categories: Access Management (physical and logical access), Change Management (managing system changes), System Operations (backup, recovery, and monitoring), and Governance (control environment and risk evaluation).
Why is Change Management a critical ITGC area for financial reporting?
Change Management controls are vital because they govern the process for introducing all software and infrastructure updates. By requiring proper authorization, testing, segregation of duties, and approval, these controls ensure that changes do not introduce errors or vulnerabilities that could inadvertently affect financial data integrity.
What must an organization demonstrate regarding Access Controls in a SOC 1® assessment?
Organizations must demonstrate robust controls over both Logical Access (how users are granted, modified, or revoked access to applications and networks, including password policies) and Physical Access (how physical access to systems, such as servers and data centers, is restricted and monitored).
About the Author
