What Businesses Can Profit From SOC 2 Type 2 Audits?
SOC 2 Type 2 certifications qualify business to exchange data with other certified IT systems.
Summary
- Successful SOC 2 Type 2 reports enable businesses to process personal and nonpublic data.
- SOC 2 Type 2 certifications assure stakeholders that their liability is limited by having well designed controls in place.
Effective June 15, 2011 companies who have information technology systems that handle confidential, private and nonpublic data can become qualified to connect with other data processing systems by complying with Service Organization Controls (SOC) systems design and control requirements established by the American Institute of CPAs (AICPA). User entities and service organizations need to work together to establish and agree on critical controls that meet the requirements of the audit. Companies that have not established information technology controls and incorporated standards that meet the SOC guide lines could be in jeopardy of failing the SOC 2 audit requirements established by AICPA. This could result in the loss of business because other companies with whom they are connecting IT systems will want assurances that their systems designs and controls are sufficient to pass a SOC 2 Type 2 audit.
Users of service organizations who establish proper SOC 2 Type 2 systems design and controls will need their third party service organizations to have been certified also. Users can then state their system has the controls to provide adequate protection.
To provide a professional solution for these new standards the team at Integrated Accounting Services (IAS) performs audits for service organizations and their clients during the same testing period where possible. IAS’s integrated approach to auditing both the service organization and its clients provides increased security, integrity and privacy for all systems. Timely coordinated reports and periodic follow-ups are part of the integrated approach to qualifying service organizations and their user entities and reporting the higher level of assurance to responsible parties.
This article is provided by Integrated Accounting Services for those seeking clarification of IT system and control requirements. Please contact us if you need an assessment of your system and to determine whether you need a SOC 1 or a SOC 2 audit to assure clients of your compliance with new standards.
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