Service Organization Control Reporting

Many companies function more efficiently and profitably by outsourcing certain tasks and functions to other organizations that have personnel, expertise, equipment or technology to accomplish these tasks. An organization that performs these tasks or functions for other entities is known as a Service Organization.

In today’s economy, it is vital that Service Organizations demonstrate adequate controls and safeguards when they host or process data belong to their customers. Service Organization Controls (SOC) reports help build trust and confidence in those controls, processes and safeguards. The SOC team at Smith & Howard focuses on preparing SOC reports in accordance with the standards of the American Institute of Certified Public Accountants, ensuring accurate, fair reporting in which Service Organizations and their customers can have confidence.

Benefits of SOC reports include:

• Increased ability to market to, attract and retain quality customers
• Satisfaction of external audit requirements
• Documentation of internal control structure
• Increased customer confidence
• Enhanced risk management
• Compliance with regulatory requirements

Some of the businesses that fall under Service Organization category requiring SOC reports include:

• Medical claims processors
• Credit card payment processors
• Payroll companies
• Fulfillment businesses
• Collection organizations
• Bill payment processors
• Investment managers
• Application service providers (data hosts)
• Securities/trading companies and customs agents

There are three types of SOC reports available, providing assurance over financial controls, and controls relevant to security, availability, processing integrity, confidentiality and privacy. For an easy-to-follow guideline on the SOC report or reports your Service Organization may need email us here.

Choosing the right professionals to serve your SOC reporting needs is a critical element of success. For more information on Smith & Howard’s SOC services, please call or email us Marvin Willis or Debbie Risher for more information.