SOC Examinations & Attestations

Service organizations work collaboratively with their auditors to define control objectives that are relevant to their specific services and business processes. While the organization provides input based on their operations, the final control objectives must align with industry standards and meet the requirements of their user organizations.

Your customers request SOC reports to gain assurance about the controls you have in place to protect their data and systems. SOC reports help them meet their own compliance requirements, reduce audit costs, and demonstrate due diligence in vendor management. It's a standard practice for organizations that rely on third-party service providers.

For SOC 1 and SOC 2 Type 2 reports, the minimum reporting period is typically six months. However, many organizations choose a 12-month period to provide a full year of coverage. Type 1 reports are point-in-time assessments and don't require a minimum duration period.

Yes, a single SOC report can be shared with multiple customers and stakeholders. This is one of the key benefits of SOC reports - they eliminate the need for multiple customer-specific audits, saving time and resources while providing standardized assurance to all parties.

SOC reports provide numerous benefits including competitive differentiation, meeting client requirements, risk mitigation through control gap identification, building stakeholder trust, operational improvements, and cost savings by reducing redundant audits. They demonstrate your commitment to security and control excellence.

Type 1 reports assess the design of controls at a specific point in time, while Type 2 reports evaluate both the design and operating effectiveness of controls over a period of time (typically 6-12 months). Type 2 reports provide more comprehensive assurance and are generally preferred by user organizations.

SSAE 16 was superseded by SSAE 18 in 2017. SOC 1 reports are performed under SSAE 18 standards. "SOC 1" is the preferred term as it's more current and accurately reflects the service organization control reporting framework. SSAE 18 is the auditing standard, while SOC 1 is the report type.

SOC 1 focuses on controls relevant to financial reporting (ICFR), while SOC 2 examines controls related to security, availability, processing integrity, confidentiality, and privacy (the Trust Services Criteria). SOC 2 is broader in scope and applicable to technology and cloud service providers, whereas SOC 1 is specifically for services that impact financial reporting.

Yes, SOC reports are applicable to both public and private companies. Many private companies obtain SOC reports to meet customer requirements, demonstrate security and control maturity, gain competitive advantage, and prepare for future growth or potential acquisition scenarios.

While SOC 1 and SOC 2 have different scopes and criteria, some controls may overlap. However, SOC 2 requires examination of additional Trust Services Criteria (security, availability, processing integrity, confidentiality, privacy) that aren't covered in SOC 1. Organizations typically need separate examinations, though some work can be leveraged.

A SOC 2 examination evaluates controls related to the Trust Services Criteria (security, availability, processing integrity, confidentiality, and privacy). Type 1 assesses control design at a point in time, while Type 2 evaluates both design and operating effectiveness over a period. Type 2 is more comprehensive and preferred by most stakeholders.

Yes, you can include multiple subservice organizations in your SOC 1 report. These are typically documented in a carve-out or inclusive method. The carve-out method excludes subservice organization controls, while the inclusive method includes them. Your auditor will help determine the appropriate approach based on your specific circumstances.

Yes, disaster recovery controls can be included in your SOC 1 test of controls matrix if they are relevant to the control objectives and impact the services you provide to user organizations. These controls help ensure business continuity and are often important to user organizations' financial reporting processes.

Yes, formally documented policies and procedures are essential for SOC examinations. They demonstrate that controls are designed and implemented consistently, provide evidence of control existence, and help ensure employees understand their responsibilities. Undocumented controls are difficult to test and may result in exceptions.

Yes, you can share your SOC 1 report with prospects during the RFP process. Many organizations proactively share their SOC reports to demonstrate their commitment to security and controls, which can be a competitive advantage. Ensure you're sharing the appropriate report type (Type 1 or Type 2) based on what the prospect needs.

While you can limit the scope of your SOC report, IT General Controls (ITGCs) are often fundamental to many control objectives, especially in technology-dependent service organizations. Excluding ITGCs may limit the usefulness of your report to user organizations. Discuss your specific needs with your auditor to determine the most appropriate scope.

Security checkpoints in the Software Development Life Cycle (SDLC) are critical controls that should be included in SOC 2 examinations. These include code reviews, security testing, vulnerability assessments, and secure deployment practices. Documenting these checkpoints demonstrates your commitment to secure software development.

U.S. service organizations typically need an ISAE 3402 report when they have international clients, particularly in Europe, who require assurance under international auditing standards. ISAE 3402 is the international equivalent of SSAE 18/SOC 1 and is often requested by global organizations or those subject to international regulations.