SOC 1: Reporting on Internal Controls Over Financial Reporting
Obtaining a SOC 1 report will allow the service organization to meet the needs of entities that use the service organization’s services by demonstrating the establishment of fairly presented, suitability designed, and effectively operating internal controls over financial reporting. A SOC 1 can provide your customers with the peace of mind and confidence to perform the services you have been engaged to perform.
About SOC 1
SOC 1 reports assure your customers that the appropriate controls are in place to effectively manage the services you provide. SOC 1 engagements are performed under the Statement of Standards for Attestation Engagements No. 18 (SSAE-18) issued by the AICPA, codified in AT-C Section 320, Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting.
There are two types of reports for the SOC 1:
A SOC 1 Type 1 report is on the fairness of the presentation of management’s description of the service organization’s system and the suitability of the design of the controls to achieve the related control objectives included in the description as of specific date.
A SOC 1 Type 2 report is on the fairness of the presentation of management’s description of the service organization’s system and the suitability of the design and operating effectiveness of the controls to achieve the related control objectives included in the description throughout a specific period.
Use of these reports are restricted to the management of the service organization, the user entity, and the user entity’s auditors.
Our Approach to Performing SOC 1 Engagements
Starting with a readiness assessment, we ensure controls are documented and we gain an understanding of your internal control environment. This early process is an important component in the foundation of an efficient engagement.
Choosing Smith & Howard as your partner in completing a SOC 1 engagement benefits your service organization by:
- Documenting your internal control environment and controls.
- Providing confidence to users of the system.
- Allowing you to meet regulatory and contractual requirements with users.
Our SOC team has been trained specifically to perform these complex engagements. You will find that we bring experience, knowledge and skill to our work and interactions with you that provide a seamless SOC experience.
For more information about SOC 1 engagements, please complete the contact form below or call Marvin Willis or Debbie McGlaun at 404-874-6244.