WHAT ARE SOC REPORTS?
What Is a SOC Report, and What Good Does It Do?
The term SOC Report stands for "System and Organization Controls Report." Its main purpose is to provide documented evidence to your clients that you’re doing everything you can to ensure the financial accuracy of your work, and/or to protect the sensitive data that they’ve shared with you as a vendor or service provider.
One of the biggest benefits of securing a SOC report, besides meeting your customers’ expectations for greater assurance, is that going through the process is likely going to improve your operations. And that could mean higher profitability and increased business for you. In fact, one of our biggest goals is to help our clients become better organizations through improved operations and systems, as a result of helping them create a SOC or HITRUST report.
One of our biggest goals is to help our clients become better organizations through improved operations and systems, as a result of helping them create a SOC or HITRUST report.
Our assessments will show you where your operations lead the industry, and where there may be discrepancies and oversights to address. Having this vital information can prompt you to make changes that your customers will value and ultimately reward. In addition, going through the process undoubtedly raises your appeal in the eyes of prospective customers.
Creating a SOC report begins with an audit process whereby your operations and control mechanisms are analyzed by an unbiased third-party, typically a certified public accounting firm like Maloney + Novotny.
The results of the report are in essence the auditor’s unbiased opinion after auditing your systems. And they should ideally show customers that your operations are ethical and in compliance with industry standards and expectations. This means reduced risk for those customers and for your own organization.
There’s a variety of reasons SOC reports provide assurance, but the biggest one is objectivity. SOC Reports can only be issued by independent, third-party auditors regulated by the AICPA, the American Institute of CPAs, that have to follow the AICPA’s standards when it comes to preparing and issuing SOC Reports. Maloney + Novotny is a longstanding member of the AICPA. A SOC Report ultimately provides your customers with an unbiased and regulated opinion about how well you’re complying with ethical principles and standard operating procedures. And auditors like Maloney + Novotny can only render that opinion after auditing a range of criteria to analyze your organization's systems and processes.
A SOC Report ultimately provides your customers with an unbiased and regulated opinion about how well you’re complying with ethical principles and standard operating procedures.
So, in summary, SOC Reports translate to reduced risk for customers that request them, as well as for the organizations that secure them.
As you may or may not be aware, there are several types of SOC Reports and choosing which one is best suited for your needs is dependent on the industry or process in question, several types of each type of SOC report, and even different controls within each report. Read on to have your questions about SOC Reporting answered, or contact us to start a conversation about your specific needs.