SSAE 18 / SOC Audit Service

In April 2010, the American Institute of Certified Public Accountants (AICPA) unveiled a new and improved auditing standard, the Statement on Standards for Attestation, to replace SAS 70 Engagements or SSAE 16. Originally designed the SAS 70 audit for financial and accounting auditing; SSAE 16 verified data center operational and security excellence.

Three other reports that described controls at a service organization followed SSAE 16, appropriately named Service Organization Control (SOC) reports. SOC 1 reports are primarily concerned with financial reporting controls, while SOC 2 and SOC 3 reports are particularly concerned with standard benchmarks pertaining to security, processing integrity, confidentiality, and privacy of a data center’s system and information. The SOC 3 is a public certification and shows the highest level of operational excellence in a data center.

Types of SOC Reports

SOC 1

The American Institute of Certified Public Accountants (AICPA) professional standards for issuing SOC 1 reports mandate that reports on controls pertaining to internal control over financial reporting (ICFR) adhere to the Statement on Standards for Attestation Engagements (SSAE).

Businesses that provide services affecting financial reporting for their clients should conduct SSAE 16 SOC 1 audits.

There are two kinds of SOC reports and audits:

Type 1: Controls reported ensure that they are effective and meet the related objectives for the specified period.

Type 2: During a specified period, this type of report assesses the effectiveness of controls within a service organization to achieve its related aim.

SOC 2

SOC 2 audit reports furnish comprehensive insights and confidence regarding a firm's adherence to the AICPA's TSC (Trust Services Criteria) for security, availability, processing integrity, confidentiality, and privacy controls. Conducting a SOC 2 audit holds significance in regulatory compliance, vendor supervision, and internal governance and risk management.

Type 1: Controls reported ensure that they are effective and meet the related objectives for the specified period.

Type 1: During a specified period, this type of report assesses the effectiveness of controls within a service organization to achieve its related aim.

SOC 3

Similar to SOC 2 reports, SOC 3 reports report on controls related to security, availability, processing integrity, confidentiality, and privacy according to general Trust Service Principles. The difference between SOC 2 and SOC 3 reports is that SOC 3 is a general-purpose report, while SOC 2 is much more restricted, and only intended for allowed parties.

What are the benefits of SOC audit?

Protection: SOC audits provide you with an independent, third-party review of your processes and controls, as we noted above. Identifying such gaps or weaknesses in advance can help you proactively address them, preventing potential damage to your reputation and ensuring your customers have a positive experience.

Efficiencies: Another benefit is less time spent dealing with your customers’ auditors. This report will typically provide everything your customers’ auditors need, especially in a SOC 1 audit. You can expect them to ask a lot of questions, or ask to come onsite and review your processes, controls, and operations if they don’t have a SOC 1. You and your employees could encounter a lot of headaches as a result, and current customers may also suffer from the delays and errors.

Differentiation: You can set yourself apart from the competition by having a SOC audit performed. Nowadays, getting a competitive edge is a crucial factor in choosing between service providers, especially in an aggressive market.

What is Cyborgenic offering for SOC?

SOC Readiness Assessment in India
SOC Remediation support
Security Testing and Reporting in India
SOC Attestation Report (from our aligned CPA partner)

Our team of expert can assist you if you are ready to take the next steps to ensure that your company is conforming to industry standards that safeguard both you and your consumers.

For a quote, please email sales@cyborgenic.com. Or, dial +919773298161 to get all of your questions answered.