SOC 1 – What does it all mean?
SOC 1 is the requirement for all companies to identify, assess, and manage IT risks. We know that every company has their own definition on what SOC 1 is but in this article we will help you understand where to find it, how to get it, and what it stands for.
What is the SOC 1
The SOC 1 report is an internal control report for service organizations that are subject to the Sarbanes-Oxley Act (SOX). The purpose of the report is to provide assurance to a company’s management and board of directors that the controls in place are adequate and effective. The SOC 1 report is usually prepared by an external auditor who will assess the controls in place and provide a report on their findings. The auditor will also provide recommendations on how to improve the controls if necessary.
The SOC 1 report is divided into two sections: Type I and Type II.
- Type I reports are focused on the design of the controls, while Type II reports are focused on the effectiveness of the controls.
- Type I reports are typically used by companies that are new to SOX compliance or have significant changes to their controls. Type II reports are used by companies that have been compliant for some time and have well-established controls.
Requirements for SOC 1
The SOC 1 report is an evaluation of a company’s internal controls over financial reporting. The purpose of the report is to give organizations the ability to show their service providers and customers that they have controls in place to protect their data.
SOC 1 reports are typically required by service organizations that handle sensitive data, such as credit card information or personal health information. These reports can be used to demonstrate compliance with regulations like the Sarbanes-Oxley Act or HIPAA.
To get a SOC 1 report, businesses must first undergo an audit by a qualified CPA. The CPA will evaluate the company’s controls and procedures to ensure they meet the requirements for SOC 1. Once the audit is complete, the CPA will issue a SOC 1 report that details their findings.
Organizations should make sure they understand the requirements for SOC 1 before they undergo an audit. They should also be prepared to answer any questions the CPA may have about their controls and procedures.
How to get SOC 1 certificate in the Philippines?
The SOC 1 report is an internal controls report issued by a CPA firm that audited a service organization’s control activities related to financial reporting. The SOC 1 report is also commonly referred to as an SAS 70 Type 2 report.
In order to get a SOC 1 certificate, the service organization must first undergo an audit by a CPA firm. The CPA firm will issue a SOC 1 report if the service organization’s control activities are in compliance with the standards set forth by the AICPA.
The SOC 1 report is used by service organizations to provide their customers with assurance that their internal controls are adequate and functioning properly. The SOC 1 report can also be used by organizations that are subject to Sarbanes-Oxley (SOX) or other similar regulations.
As one of the largest ISO consultants in Philippines, Sterling International Consulting works very closely with your team to implement a robust, result oriented, value adding and employee friendly SOC 1 in your organization. We help you improve your processes, performance, productivity and profitability with our lean approach to the SOC 1 complaince. If you are interested in getting a SOC 1 certificate, please contact us at email@example.com or call our 24 hours customer care number +63 9778151204