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If you are struggling to provide assurance around the risk management and controls, ISO-SAUDI will help you to attain the right path. You need to know about the term ‘SOC’ and this is abbreviated as System and Organization Controls which is type of assessment which analyses an organization’s internal security controls for IT systems, data security, financial reporting and other operational areas. It is also considered as one of the best methodologies to develop trust which is performed by a third-party independent CPA (Auditors) or any firm accredited by the American Institute of Certified Public Accountants (AICPA). They provide the clients and stakeholders reassurance concerning the efficiency and the security of the systems and its data.
HOW IT IS DONE
The company’s information security controls will be assessed by ISO-SAUDI and the CPA who will also gauge the extent to which each SOC control target is met by the documentation provided. The CPA will publish a SOC report on whether the company’s internal cybersecurity posture complies with the SOC 2 security standards and requirements. A SOC audit report will boost up the trust quickly and it would serve as a great reference from an auditor, as they are well known important player in this sector.
TYPES OF SOC AUDIT REPORTS
In SOC audit, reports play a key role here, and there are three different types of SOC reports. For the evaluation, the type of SOC report can vary depending on the service of the organization. They might need one, two or all the three types of the reports. The three types of SOC reports are listed as,
- SOC 1
- SOC 2
- SOC 3
As mentioned earlier, the coverage and the utility differ from one report to the other.
This type of SOC report covers the Internal Controls over Financial Reporting (ICFR). It applies to businesses that provide service that has an effect on the financial statements of their customers such as data centres, payroll processing businesses and collection agencies.
This is a type of report which has a more general set of controls and is available to all service organizations. There are five trust services criteria, Security, Privacy, Confidentiality, Availability and Processing Integrity. The entity may request both the reports if the organization is large enough to offer financial reporting services in addition to other services.
An SOC 2 audit report generally includes,
- Opinion letter
- Management assertion
- Detailed description of system
- Details on selected trust services categories
- Test of controls
SOC 3 and SOC 2 are similar but not the same. Both uses the trust services as an evaluation criterion. The target audience are where they differ, SOC 2 is a lengthy, in-depth audit report intended primarily for other businesses to study whereas, SOC 3 is a shorter, more legible audit report that is meant to be read by the general public.
If the organisation is a service provider to both businesses and individual customers, then both SOC 2 and SOC 3 both audit report are required for the evaluation.
There is another form of report in addition to the ones, listed above.
- SOC TYPE I- It is a short, crisp and a less detailed report. It usually takes a little three weeks to complete this report. Additionally, it was tested to see if the controls were created appropriately.
- Pros: Time Saver
- Cons: Less Assurance
- SOC TYPE II- This is contradictory to Type I, this is an elaborative and evaluated over a period of time. It is mainly used to determine whether the control functions are deliberated. It can take up to 12 months to complete.
- Pros: More Comprehensive
- Cons: Time and Money
“Auditing is not the destination; it is a journey, discovery at each step”
SOC for Cybersecurity
SOC for cybersecurity is a newbie where it highlights about the controls of the organization’s cybersecurity risk programs.
SOC for Vendor Supply
AICPA has released a new guidance for SOC for Supply Chain reporting that provides information on the procedures and risk-mitigation measures used.
Trusted Services Categories
- Security- How well it safeguards from unauthorized invasion
- Availability- How easily the information systems are accessible
- Privacy- Usage and disposal of private data.
- Confidentiality-How well it protects the sensitive data
- Processing Integrity-Systems able to function properly.
HOW TO PREPARE FOR A SOC AUDIT
- Report type
- Define Audit scope
- Gap analysis
- Rediness assessment
SOC summarises the findings of detailed evaluation of organisation’s control, systems and procedures. It also provides succinct overview of the audit, efficiency and the areas that require further investigation. SOC is essential for giving stakeholders valuable insights about the organisation’s security, compliance and integrity. ISO-SAUDI offers this comprehensive process for your organization to establish the trust and transparency within your user entities.
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