SYSTEM ORGANIZATION CONTROL
SOC is designed to help service organizations that provide services to other entities, build trust and confidence in the service performed and controls related to the services through a report.
TYPES OF SOC compliance
SOC 1 (SOC for Service Organizations ICFR): Report on controls of a Service Organization relevant to user entities’ Internal Control over Financial Reporting (ICFR).
SOC 2 (SOC for Service Organizations, Trust Services Criteria): Report on Controls of a Service Organization relevant to Security, Availability, Processing Integrity, Confidentiality and Privacy.
SOC 3 (SOC for Service Organizations Trust Services Criteria for General Use Report): These reports are designed to meet the needs of users who need assurance about the controls of a service organization.
SOC for Cyber Security (New): A reporting framework for communicating information about the effectiveness of cybersecurity risk management program to a broad range of stakeholders.
SOC for Vendor Supply Chain (Under Development): An internal controls report on a vendor’s manufacturing process for customers of manufacturers and distributors to better understand the security risks in their supply chains.
SOC ASSURANCE REPORTING
Type 1 (Point in time) reports cover the suitability of the design of controls as of a point in time. The Type I report is a snapshot in time.
Type 2 (Period of time) cover the suitability of design and operating effectiveness of controls over a period of time, typically 6 or 12 months.
Who can get SOC COMPLIANCE?
SOC is widely applicable for service organizations like Payroll Processors, Medical Claims Processors, Data Analytic Providers, Loan Servicing Companies, Datacenter Companies, Third-Party Administrators (Retirement Plans, Medical Benefits, Pharmacy Benefits), Bank Trust Departments, Real Estate Title Companies, Advertising Companies, Insurance Companies, Loan Servicing, Hospice, Secure Printing, Software-as-a-Service (Saas) companies that may impact the financials & security of their user entities.
SOC in India
SOC in Australia
SOC in Singapore
SOC in Maldives
SOC in Turkmenistan
SOC in Philippines
SOC in South Africa
SOC in Mauritius
SOC in Kenya
SOC in Ethiopia
SOC in Mozambique
SOC in Nigeria
SOC in Eqypt
SOC in Oman
SOC in Qatar
SOC in Bahrain
SOC in UAE
SOC in Saudi Arabia
SOC in Lebanon
SOC in Kuwait
SOC in USA
SOC in Canada
SOC in Europe
What are the benefits of SOC COMPLIANCE?
SOC 1: This kind of report takes associate degree up-close to scrutinize the inner controls of a service organization that directly impacts a user entity’s control over monetary reportage.
On winning completion, the service organization receives a document that sets it apart from its peers by showcasing its sound management objectives and management activities.
The report conjointly displays these facts to all or any user organizations and their aditors, typically satisfying the user auditor’s needs. A winning report permits the auditors of these users you are doing business with to actually grasp the inner controls of your organization.
SOC 2: A SOC 2 Report describes the controls of the service organization that covers security, accessibility, process integrity, confidentiality and privacy. It’s necessary to observe that there are 2 sorts of SOC two reports:
A Type I focuses on the correct representation of management’s description of the organization’s system and therefore the eligilibility and effectiveness of applicable controls to fulfill trusted services criteria as of an explicit date.
With a SOC 2, Type II, equivalent information is presented, however it is that which was gathered throughout a fixed time period.
Regardless of the kind, a winning SOC 2 Report could be a powerful weapon for any service organization because it sets you apart from your competitors by shining a spotlight on your effective operational strategy and controls. A SOC 2 Report permits customers and stakeholders to quickly develop confidence in your organization because of your efforts to showcase your controls in such a clear manner.
SOC 3: SOC 3 addresses equivalent subject areas as a SOC 2 Report, however, is given in an exceedingly shorter outlined format.
Unlike the results you receive from SOC 2 that may usually solely be viewed by parties that already have information regarding the character of your services and organization, a SOC 3 Report will be used as a promoting tool, open to public.
Your winning results will be shared with potential purchasers and customers to point out to them that you simply have the acceptable controls to side-step risks on non-financial problems.
This will enable them to position trust in your organization and you’ll have a competitive edge that creates your SOC investment a worthy one.
What are the requirements of SOC COMPLIANCE?
SOC has a very rigid requirement, SOC Reports are very unique to each organization.
Hence, major items are listed based on:
SOC 1 – Internal Control over Financial Reporting (ICFR)
SOC 2 – Trust Services Criteria (Security, Availability, Processing Integrity, Confidentiality and Privacy)
SOC 3 – Trust Services Criteria for General Use Report