SOC Reporting Services
Managing Outsourcing Risk Through SOC Reporting
Businesses are increasingly relying on outsourcing to grow, gain efficiencies, and focus efforts on where they build value for their customers. It is critical to address the risk related to the outsourced services and there is an increasing need for documenting these details for other parties that may be affected.
System and Organization Controls reporting can show that a service provider has implemented adequate controls over the business processes related to the service as well as the supporting information technology.
There are multiple types of reports that a service provider can obtain to show customers, partners, or regulators that the risks related to their services are effectively mitigated.
To provide management of the service organization, user entities, and the independent auditors of user entities’ financial statements with information and a services auditor’s opinion about controls at a service organization that are likely to be relevant to user entities’ internal control over financial reporting.
To provide service organization management, user entities, business partners, and other parties with information about controls at the service organization relevant to security, availability, processing integrity, confidentiality, or privacy to support understanding and managing the risks arising from business relationships with service providers.
To provide interested parties with a service auditor’s opinion about the effectiveness of controls at the service organization relevant to security, availability, processing integrity, confidentiality, or privacy.
To provide general users with useful information about an entity’s cybersecurity risk management program for making informed decisions.
To provide specified users with information about the controls within the entity’s system relevant to security, availability, processing integrity, confidentiality, or privacy to enable users to better understand and manage the risks arising from business relationships with their supplier and distribution networks.
SOC reports are designed as “Type 1” or “Type 2”. Type 1 reports represent a point in time and attest to the design and implementation of the identified controls. Type 2 reports cover a period of time, typically 12 months, and attest to the operating effectiveness of the controls in addition to design and implementation.
The professionals at KBF can assist with identifying the appropriate report(s) and scope for your specific needs. Our seasoned professionals have worked with
clients ranging in size from publicly traded Fortune 500 companies to start-ups in industries including manufacturing, retail & consumer, technology and life
sciences.
Our approach emphasizes the importance of proper scoping and alignment with effective processes to optimize efficiency and minimize the likelihood of a burdensome control environment. Unnecessary or duplicative control activities can be distractions that do not serve to reduce the identified risks. Our intention is to keep an organization’s compliance related efforts in scope and manageable so they can focus on where they are building value for their clients and
stakeholders.
KBF SOC Services
SOC Readiness Assessment
Our professionals will work with you to identify the relevant risks related to the services provided and determine where there are controls or processes in place to address these risks or whether there are gaps. The focus of the assessments are appropriate scoping and existing processes to find efficiencies wherever possible.
SOC 3
This reports similarly to SOC 2, but with far less detail. These reports are typically generated for marketing purposes as there is little risk in them being available to the general public.
SOC 1
This reports on the controls at a service organization relevant to a user entity’s internal control over financial reporting. This typically includes controls over the organization, supporting information technology, and the business processes scoped in for the report.
SOC for Cybersecurity
This reports on a set of policies, processes and controls in place to prevent cyberattacks against industry best-practice benchmarks to provide a trusted opinion on effectiveness.
SOC 2
This reports on controls at a service organization relevant to security, availability, processing integrity, confidentiality or privacy. Controls relevant to security are always required and the others can be included to provide comfort to customers over those specific risks.
SOC for Vendor Supply Chain
This reports on your internal SOC standards to evaluate your vendors to give your stakeholders confidence in the control environment of relevant supply chain partners.
We Build Value at Any Maturity Level
Exploratory
Preliminary assessments for compliance roadmap planning
Exploratory
Expedited schedules for pressing client requirements
Maturing
Assessments for organizations with some established controls
SOC Compliant
Optimization of mature
compliance programs