Your Roadmap to Risk Reduction!
An Overview of Auditing Standards
A System and Organization Controls audit provides a thorough look at an organization’s internal processes and controls. These can range from IT security to financial reporting, privacy, security, and other key elements required for handling sensitive or critical data. For example, a third-party certified public accountant examines a financial firm to ensure that everything is up to current standards. After the audit, a report is issued to reveal compliance or needed improvements.
Service organizations that work with another company where IT compliance audit is needed should undergo regular audits to maintain a competitive advantage, build trust, and demonstrate a commitment to security.
Importance of SOC Audits
SOC audits evaluate service companies to reassure their customers and stakeholders that they’re meeting the most stringent requirements when it comes to laws, compliance, and security. The SOC report also provides insights that can help a firm better understand risk assessment and make necessary changes for efficiency and cost-effectiveness.
Service companies use them to ensure that their internal practices and security measures are up to speed in a fast-changing, at-risk environment. Knowing that their outsourced services can be fully trusted in handling sensitive information gives these companies a competitive advantage, as well as keeping them in compliance with current regulations.
Let’s Talk About Your SOC Audit Needs
Financial institutions, cloud providers, or any kind of service provider that deals with sensitive information should make a regular SOC audit part of their business. For example, an SSAE 18 report gives assurance that a data center has the internal controls needed to protect sensitive information. Impact financial reporting provides a more holistic view of a company, noting the value of non-financial assets and other types of performance metrics.
Continuum GRC offers a variety of professional audit services to keep your organization in compliance and up to speed with the latest security, privacy, and efficiency standards.
Frequently Asked Questions
There are two types of SOC audits around SSAE 18. SOC 1 audits look at how organizations handle financial information for clients, including anything else that might affect their financial statements.. SOC 2 examines a broader range of data practices, like confidentiality, processing, and security. Both are about ensuring best practices.
Most service organizations undergo a SOC 2 audit once a year, typically aligned with their fiscal or calendar year. Some may do it at different times, to match up with changes in regulatory laws, client demands, or shifts in information security. It’s a great way to show a commitment to security.
The average length of time to complete a SOC 2 audit is between six and twelve months. Factors may influence this, as in how prepared your company is, the testing and documentation, and any remediation that may be required. Then there’s the final report, delivered a few weeks after the audit.
A SOC1 audit focuses more on financial reporting and associated controls. The end goal is to ensure that all reporting and information in this space is as accurate as possible, such as billing and data entry. A SOC2 audit reviews privacy controls and general data security, like encryption and backup systems.
An SSAE 18 audit is the broader framework and guidelines that CPAs use to assess internal controls inside service organizations. The SOC2 audit is a specific audit that looks at security, confidentiality, availability, and privacy practices as they relate to data. It’s used within organizations handling sensitive information.
An SSAE 18 compliance audit is meant to ensure that a service organization has solid internal controls related to financial reporting that are working effectively. This includes things like security, access, and processing of data. Passing this kind of audit provides confidence in your security framework to clients and stakeholders.
The Continuum GRC ITAM SaaS platform has hundreds of plugin modules available, such as:
SSAE 18 (SOC 1), SOC 2, and SOC 3 Audit
The SOC 1, SOC 2, and SOC 3 attestations are globally recognized frameworks focused on Security, Availability, Privacy, Processing Integrity, Confidentiality, and Availability.
Modules include:
- AICPA SOC 1
- AICPA SOC 2 & 3
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