Does your organization offer services that impact the financial reporting of your clients? If so, a SOC 1 report could help demonstrate the IT general controls and business process controls in place to achieve control objective statements.
SOC 1 Report Overview
A SOC 1 report details the potential risks related to utilizing your organization’s services. While the SOC 1 report doesn’t make any predictions about future performance, it does offer a snapshot of your systems as of a particular date (Type 1) or a look at your systems over a specified period (Type 2).
A SOC 1 report must be completed by a CPA firm that specializes in IT auditing and security controls. The CPA firm reviews management’s assertions about the controls in place to meet the report objectives and provides an option on whether that assertion is reliable.
Are SOC 1 Reports Mandatory?
While not mandatory, your clients and investors may ask about your SOC 1 status if the services provided by your organization impact internal controls over financial reporting. If your clients rely on your cybersecurity controls for proper reporting over financial controls, a SOC 1 can demonstrate the operating effectiveness of your organization’s processes.
What Are SOC 1 Report Used For?
SOC reports offer transparency to establish trust between service organizations and key stakeholders, and SOC 1 reports are no different. A SOC 1 audit offers clarity to your partners about your cybersecurity controls and related processes that might impact their financial reporting.
The best way to prepare for your SOC 1 report is to complete a SOC 1 readiness assessment. Your audit team will work with you to identify and remedy gaps in your controls that might otherwise negatively impact your SOC 1 report opinion. Learn more about SOC 1 readiness.
Choose an Experienced SOC 1 Partner
When it comes to SOC 1, an experienced team can make all the difference. Our partners have over 20 years of audit experience and are here to support you through the audit process. If you are ready to get started with SOC 1 reporting, contact Auditwerx today.
