Most companies often are on cross-roads on how to choose the right SOC type of Audit for their organization. Organization can choose either SOC 1 or SOC 2 types of audit based on the requirements and controls that they have implemented.

The control objectives related to both business process and information security which may impact the client’s financial reporting, shall choose SOC 1. Under the SOC 1, the organization can just opt for Type 1 which is just the Description of Controls of what  they have implemented. If they choose SOC 1 and Type II, the organization should demonstrate the description of controls and also provide the results of testing as part of evidence exercise.

Similarly if the organization would like to opt for SOC2 Type2 Audit, which is much more than the SOC1 but also addresses the Trust Principle (i.e) Availability, Security, Process Integrity, Confidentiality and Privacy. Like SOC 1, SOC 2 also has Type I and Type II which states the Description of Controls and also Description of Controls and Testing with results.

Criteria to Select the Right Service Provider

The real challenge in choosing the right service provider to help you with the attestation of the Audit report be it SOC 1 or SOC2. The following are the suggestions that organization intend to go in for Attestation Process.

• Even though this is attested by the CPA (Financial Auditors), it is equally important that the CPA is backed up by a capable Information/Cyber Security Organization. SOC reports are in-depth and require multiple validation and verification both technically and Process wise as well. 
• Most attestations fail to qualify due to lack of technical controls assessed or improper validation of technical controls implemented. It is important that the technical of various flavors are involved in the assessment such as Physical Security, Operating System Security, Application Security, Database Security, Network Security and operation Security. The technical validation list is endless but is determined by the level of controls that is required for the identified organization.
• Attestation of report is for the historical information irrespective of the type of SOC chosen. So it is important that the organization understand that scope and the criteria of the report that is required to be attested.
• SOC attestation helps organizations limit the number of security queries being bombarded by various Client and Customer on a periodic basis. Once when the SOC reports are attested, they can share the report with their client and customer who almost ask the same set of questions on their security compliance.
• Organizations are required to perform the SOC audit every 12 months, else the attestation of the period 12 months can not be held valid for the next subsequent 12 month. It is purely time bound.
• Organization may have ISO 27001: 2013 certification in place, but SOC audit and attestation gives an edge over and complement the ISO 27001:2013 Certificate.

How would IARM help with the SOC 2 Type 2 Audit ?

IARM will do SOC 2 type 2 Audit, for all service industries. Now a days Enterprises are struggling with regulatory compliance issues largely because of audit costs, financial obligations, and recognizing the complexities of the laws and regulations themselves. 

We are here to help. Our audit team has performed SOC2 type 2 Compliance and Audit Services for a number of industries, including property management companies, application service providers, financial institutions and payroll service bureaus. 

IARM has empaneled the credible & reputed CPA’s to attest the report for SOC2 Type2 Compliance.