SOC for Service Organizations (SOC 1 / SOC 2 / SOC 3)
Almost all the organizations today obtain services from specialist service organizations or outsource certain activities or an entire function to such service organizations. As part of their own risk management programmes, these organizations (also called as ‘user entities’ in the context of SOC), need to identify, evaluate and address risks related to interactions with such service organizations. For this to be carried out effectively, these user entities demand information from the service organization in terms of the design, operation and effectiveness of internal controls established by the service organization for managing risks related to the services and the system used to provide the services. The service organization can then provide such information through a report issued by a Certified Public Accountant (also called as a ‘Service Auditor’ in the context of SOC) after conducting an examination of the design, implementation, and the operating effectiveness of the system of internal controls of the service organization.
One or more of the following types of reports are issued by a Service Auditor based on the request by the service organization –
- SOC 1® – ICFR (Internal Controls over Financial Reporting)
- SOC 2® – Trust Services Criteria
- SOC 3® – Trust Services Criteria for General Use Report
Note: SOC 1, SOC 2 and SOC 3 are registered trademarks of AICPA
ProcessLOGIX compliance consultants assist organizations to develop the system of internal controls in accordance with the applicable requirements of SOC for Service Organizations and hand-hold through the attestation engagement with a Certified Public Accountant (CPA) / CPA Firm having an active license in the United States of America.