SOC 2 for startups is an interesting topic as one would think that a small, relatively non-complex environment would be easy for obtaining SOC 2 (or even SSAE 18 SOC 1) compliance. Well, yes and no. Don’t you hate the political in the middle answer! Truth be told, the yes part of the answer is that working with a small group of professionals, generally located in one physical location, can make SOC 2 for startups easy going. The no part of the answer is that startups generally lack any type of real and meaningful policies, procedures, and processes. Change control processes? Probably not in place. Documented incident response procedures? Probably not well documented! Security awareness training? Hmm, nope, not being done! Get the picture. That’s the yes and no.
SOC 2 reports are in high demand today, especially when it comes to the ever-growing number of technology-oriented service organizations who are providing critical outsourcing services to other businesses. NDNB provides high-quality, competitively priced, fixed fee SOC 2 reports for both Type 1and Type 2 reports for Dallas, Houston, and Austin, Texas businesses.
Take a page out of the NDNB playbook for Dallas, Houston, and Austin, Texas businesses, making note of the following best practices and other important criteria regarding SOC 2 reports:
SOC 1 vs. SOC 2
Make sure you that your business is performing the “correct” audit when it comes to SSAE 18 SOC 1 and SOC 2. SOC 1 assessments are for service organizations performing ICFR functions, while SOC 2 assessments are aimed at technology companies – data centers, SaaS, IaaS, PaaS, managed services, and others. There is a difference between SOC 1 and SOC 2, and deciding on which assessment generally begins with client requests and demands.
Pick the Correct Trust Services Principles
Simply known as the TSP’s, there are five (5) of them, which are the following: 1. Security. 2 Availability. 3. Processing Integrity. 4. Confidentiality. 5. Privacy. They are each unique in that they assess a specific area within a service organization’s control environment, ranging from processes and procedures to essential services and functions being performed by a company. As to which of the five (5) TSP’s to include in your SOC 2 audit – good question – and this really comes down to client needs and expectations, along with other variables, such as industry specific/market needs, etc.
SOC 2 vs PCI Compliance – Introduction and Overview
As auditors, we’re often asked to provide a comprehensive overview regarding SOC 2 vs PCI compliance. More specifically, businesses that have to undertake both SOC 2 audits and PCI DSS assessments on an annual basis want to learn more about the respective frameworks, what overlaps and mapping of controls exist, pricing, and much more. Well, let’s get started and take a deep dive into SOC 2 vs PCI compliance, compliments of NDNB, one of North America’s leading providers of high-quality, fixed-fee audit services from coast to coast.
An Introduction to SOC 2
System and Organization Controls (SOC) 2 is a comprehensive reporting framework put forth by the American Institute of Certified Public Accountants (AICPA) for which independent, third-party auditors, such as a CPA and/or CPA firm, perform an assessment and subsequent testing of controls relating to the Trust Services Criteria (TSP) of Security, Availability, Processing Integrity, Confidentiality and/or Privacy.
In need of a SOC 2 audit or are seeking to learn all about the SOC 2 audit process? Then consider NDNB, California’s leading provider of high-quality, fixed-fee audit services. NDNB also offers comprehensive training resources for all aspects of the AICPA System and Organization Control (SOC) framework, which consists of SSAE 18 SOC 1, SOC 2 and SOC 3 reporting. Learn more about NDNB’s SOC 2 audit services today at socreports.com, or call Christopher G. Nickell, CPA, at 1-800-277-5415, ext. 706 (or email at This email address is being protected from spambots. You need JavaScript enabled to view it.) to learn about NDNB’s fixed-fee SOC 2 audit engagements.
California’s Leading Provider of SOC 2 Audits – Fixed Fees
As California’s leading provider of high-quality, fixed-fee SOC 2 audits, NDNB can help your organization become compliant quickly, comprehensively, and in a cost-effective manner. The SOC 2 audit process doesn’t have to be an extremely laborious, time-consuming and expensive proposition – not all – especially when utilizing the services of a proven and trusted CPA firm such as NDNB. From offering initial SOC 2 readiness assessments to comprehensive documentation writing services – and more – NDNB is ready to get you compliant, quickly and cost-effectively.
SOC 2 reporting for Colorado businesses in Denver, Fort Collins, Boulder, and other surrounding areas, is offered by NDNB, one of North America’s leading providers of SOC 1, SOC 2, and SOC 3 compliance solutions. SOC 2 reporting, which is part of the AICPA System and Organization Controls (SOC) framework, incorporates the use of what’s known as the Trust Services Principles & Criteria (TSP), which essentially consists of “criteria” based provisions. Simply stated, it’s a comprehensive audit performed on many technology companies regarding their internal control structure.
NDNB leads the way in SOC 2 Type 1 & 2 audits for Charlotte, Raleigh, Durham and other businesses across the state of North Carolina. We know that running a business is hard work, and that’s why NDNB guarantees that your audit will come in on budget and on time.
NDNB goes above and beyond industry standards in regulatory compliance report auditing, ensuring that your clients have the information they need and the assurance that your business meets all state and federal reporting guidelines. Here’s how.
NDNB enters the picture before the audit process begins by offering a scoping and readiness assessment. This process ensures that the internal controls, policies and procedures are in place and that your audit best represents your North Carolinian company.
Once the gaps and deficiencies are found, NDNB is here to provide our clients with a complementary SOC 2 Policy Packet filled with templates and documents to help remediate those findings; NDND also provides onsite assistance to help strengthen and formalize your internal controls.
As the SOC 2 auditing process can be overwhelming, NDNB suggest clients who are new to these compliance reports to begin with a Type 1, focused on a specific date in time, and then to transition to a Type 2 the following year which encompasses a testing period of generally six (6) months.
From there, we work with your company every step of the way, ensuring that all standards are met and that your organization remains in compliance so you and your clients can rest easy at night.
We are here to help make what may seem like a daunting process as easy as possible. When your business is ready to take these steps with us, call Christopher G. Nickell, CPA, at 1-800-277-5416, ext. 06, or email him at This email address is being protected from spambots. You need JavaScript enabled to view it. to learn more.
NDNB is Southern California’s leading provider of SSAE 18 SOC 1 compliance audits, offering fixed fees for both SOC 1 Type 1 and SOC 1 Type 2 assessments for businesses all throughout San Diego, Orange County, Los Angeles, Santa Barbara, and other select locations. With today’s continued growth of massive regulatory compliance mandates, Southern California businesses are being forced to undertake annual audits & assessments – such as SSAE 18 SOC 1 – and NDNB is ready to assist in providing efficient, high-quality, and cost-effective services and solutions.
SOC 1 Compliance Auditors | Southern California | Fixed Fees
One of the most common questions we receive from Southern California businesses is which audit should they be performing, a SOC 1 assessment or possibly a SOC 2 assessment, and it’s a valid question. For clarity, remember that SOC 1 audits are generally imposed on service organizations that have the ability to impact financial reporting on behalf of their clients, such as transactions undertaken that could impact revenue reporting, balance sheet information, cash flow models, etc. As for SOC 2 assessments, they’re aimed directly at businesses that rely heavily on information technology as their core business, such as data centers, SaaS entities, and more.
In need of a SOC 2 audit or are seeking to learn all about the SOC 2 audit process? Then consider NDNB, California’s leading provider of high-quality, fixed-fee audit services. NDNB also offers comprehensive training resources for all aspects of the AICPA System and Organization Control (SOC) framework, which consists of SSAE 18 SOC 1, SOC 2 and SOC 3 reporting. Learn more about NDNB’s SOC 2 audit services today at socreports.com, or call Christopher G. Nickell, CPA, at 1-800-277-5415, ext. 706 (or email at This email address is being protected from spambots. You need JavaScript enabled to view it.) to learn about NDNB’s fixed-fee SOC 2 audit engagements.
California’s Leading Provider of SOC 2 Audits – Fixed Fees
As California’s leading provider of high-quality, fixed-fee SOC 2 audits, NDNB can help your organization become compliant quickly, comprehensively, and in a cost-effective manner. The SOC 2 audit process doesn’t have to be an extremely laborious, time-consuming and expensive proposition – not all – especially when utilizing the services of a proven and trusted PCAOB CPA firm such as NDNB. From offering initial SOC 2 readiness assessments to comprehensive documentation writing services – and more – NDNB is ready to get you compliant, quickly and cost-effectively.
NDNB provides Colorado businesses with comprehensive SOC 1 SSAE 18 solutions, ranging from in-depth readiness assessments to SOC 1 SSAE 18 Type 1and SOC 1 SSAE 18 Type 2 reporting. Because of the complexities and time-commitments necessary for undertaking annual compliance audits – such as SOC 1 SSAE 18 – Colorado businesses in Denver, Boulder, Fort Collins, and other select regions – would highly benefit from a useful and proactive readiness assessment. They’re brief, highly informative, and provide insightful information for ensuring one’s control environment is ready for an actual SOC 1 SSAE 18 audit.
SOC 1 Readiness Assessments for Colorado Businesses
NDNB’s SOC 1 SSAE 18 readiness assessments effectively encompass the following services and solutions for Colorado businesses:
Processes & Practices: Documentation, such as policies and procedures are critical, but so are the actual processes and practices for ensuring a strong internal control environment actually exists. Identifying weaknesses and a lack of controls – if any – is also a critical component of NDNB’s SOC 1 SSAE 18 readiness assessment for Colorado businesses.
SOC 2 Type 1certification audits are offered from NDNB, North America’s leading provider of high-quality, competitively prices System and Organization Controls (SOC) assessments. Additionally, SOC 2 Type 1 certification audits performed by NDNB also come complete with a complimentary SOC 2 Policy Packet containing hundreds of pages of critical information security and operational specific policies, procedures, and much more.
We provide a complimentary SOC 2 Policy Packet for each our clients! Please note that while the term “SOC 2 certification” is well-known and used, it is actually an incorrect statement as no certification is provided. Rather, a SOC 2 audit is an assessment conducted in accordance with stated AICPA standards, such as the Trust Services Criteria, one that results in the issuance of a SOC 2 report, complete with an attestation.
Here’s what you need to know about SOC 2 Type 1 audits, courtesy of NDNB, North America’s leading provider of SSAE 18 SOC 1 and SOC 2 assessments:
1. SOC 2 Type 1 Audits are a Starting Point: Call it the essential stepping stone process for SOC 2 compliance whereby companies new to internal control audits begin with a SOC 2 Type 1, then subsequently “graduate” and move on to annual SOC 2 Type 2 assessments in future periods. A SOC 2 Type 1 also helps lay the fundamental groundwork for policies, procedures, and processes that will ultimately be assessed during the SOC 2 Type 2 test period.
SSAE 18 SOC 1 audit reports are available at fixed fees for Austin, TX and San Antonio, TX businesses from NDNB, Texas’ leading provider of SOC audits and compliance services. With years of experience performing regulatory compliance audits and assessments, NDNB has the expertise and knowledge for ensuring an efficient, high-quality audit process from beginning to end. While the SOC 2 assessmentstandard is highly suitable for many of today’ technology businesses (i.e., data centers, SaaS & cloud computing, etc.), SSAE 18 SOC 1 reporting focuses on the Internal Control over Financial Reporting concept, known simply as ICFR.
SOC 1 Reporting and ICFR – What Texas Businesses Need to Know
Specifically, service organizations providing material services to customers for which such functions have the ability to impact their customer’s financial reporting, are the ideal candidates for SSAE 18 SOC 1 audit reports. Banks, trust departments, actuarial services, third party administrators (TPA) – these are all excellent examples of SSAE 18 SOC 1 audit reporting candidates.
Hosting in Amazon AWS and Need a SOC 1 or SOC 2 Audit? Let's Talk.
If you as a service organization are working with any type of client specific data that may be relevant to such clients’ financial reporting, then the SSAE 18 SOC 1 standard is an ideal audit indeed. Since the retirement of the historical SAS 70 audit standard some years ago, SSAE 18 SOC 1 reporting has become the global de factor reporting standard for internal controls relating to financial systems – no question about it – but please keep in mind that SOC 2 is also a viable option, particularly for technology-oriented service organizations.
SOC 2 Type 1 compliance assessments & audits are offered from NDNB, North America’s leading provider of high-quality, competitively prices SOC assessments. Additionally, SOC 2 Type 1 compliance assessments & audits performed by NDNB also include a complimentary SOC 2 Policy Packet containing hundreds of pages of critical information security and operational specific policies, procedures, and much more.
Hosting in Amazon AWS and Need a SOC 1 or SOC 2? Let's Talk.
Here’s what else you also need to know about SOC 2 Type 1 compliance, courtesy of NDNB:
1. A SOC 2 Scoping & Readiness Assessment is Essential: If you’re new to the world of regulatory compliance, particularly the AICPA SOC 1, SOC 2, and SOC 3 reporting frameworks, then welcome, and don’t forget that a readiness assessment is crucial. Why? Because you’ll want to have an objective, independent assessment of your internal controls BEFORE you even begin to think about performing an actual SOC 2 audit. More specifically, you’ll need to find a proven CPA firm who can help assess audit scope, identify areas of remediation, and provide you with a roadmap for audit success.
Getting it “right” in terms of SOC 2 compliance means performing a readiness assessment and assessing, evaluating, and taking necessary action on the findings of such results. Every service organization being required to perform annual SOC 2 audits will no doubt benefit from NDNB’s SOC 2 readiness assessments, so contact Christopher G. Nickell, CPA, at 1-800-277-5415, ext. 706, or email him at This email address is being protected from spambots. You need JavaScript enabled to view it. today.
NDNB provides Southern California businesses in Orange County, Los Angeles, San Diego – and other SoCal regions – with industry leading SOC 2 Type 2 reports for fixed fees. As industry leaders in the world of regulatory compliance, NDNB has been working all throughout the state of California for years in offering professional services at reasonable fees that all businesses can live with.
Compliance can be an expensive and time-consuming mandate – particularly when it comes to SOC 2 Type 2 reports – so do what other businesses all throughout Southern California have done, and that’s turn to the compliance experts at NDNB.
Want to learn more about SOC 2 – great – then take note of the following critical issues regarding the System and Organization Controls (SOC) framework:
SOC 1 and SOC 2: SSAE 18 SOC 1 assessments are different from SOC 2 assessments, and this you need to know. Yes, they both assess a service organization’s control environment, but SSAE 18 SOC 1 is for businesses providing services that can impact a client’s financials, while SOC 2 is for technology-oriented businesses. You would think with such a clear distinction between two (2) reports that picking the right audit is easy – wrong – and that’s because your clients are often misinformed and mislead on which reporting option to choose. The SOC 1 vs. SOC 2 debate continues to rage, but thankfully, clarity and transparency are coming into play where service organizations are truly beginning to understand the differences.
Looking for a SOC 2 Type 1 guide, then welcome to socreports.com, the most in-depth website dedicated to the SOC 2 standard. Developed by NDNB – North America’s leading provider of SOC 2 assessments, socreports.com will answer all your SOC 2 questions, essentially becoming your SOC 2 Type 1 guide. Moreover, NDNB’s SOC 2 Type 1 guide information is without question the most informative, up-to-date, and easy-to-read documentation found anywhere on the Internet today.
If your business is interested in seeking annual SOC 2 compliance – or you’re being requested to perform such services by a client or notable prospect – here’s what you need to know:
1. Welcome to the World of Regulatory Compliance: Today’s business world is full of challenges and complexities, and now a new and ever-growing mandates sits high on the list for many businesses; regulatory compliance. With an ever-changing digital world and a threat landscape that seems to be growing larger each year, companies are being required to perform a host of annual security and operational audits, such as SSAE 18 SOC 1 and SOC 2 compliance. SOC 2, put forth by the AICPA, is essentially tailored towards technology companies – the likes of data centers, SaaS vendors, and more – so if that’s you, then expect to be summoned for annual SOC 2 compliance.
NDNBprovides industry leading SOC 2 audit reports and assessments for metro Atlanta businesses, along with other entities in select regions throughout the state of Georgia. With growing regulatory compliance mandates being imposed on all types of organizations – regardless of industry, size or location – now’s the time to seek out the services of Georgia’s premier SOC 2 audit firm, and that’s NDNB.
Atlanta is the new hotspot for technology in the country – and it’s no fad – as companies are pouring into Georgia because of friendly labor laws and low taxes. Just look at how much Alpharetta has grown in recent years, with a large part of its success directly attributed to the tech sector. Yet it also means that the untold numbers of technology companies in Atlanta will more than likely face growing regulatory compliance mandates, specifically that of SOC 2 compliance, and for good reason. As companies continue to outsource critical services, they must rely on the safety and security of various third-parties, and SOC 2 audit reports are high on the list for many businesses providing such services to other entities.
Answer: SOC 2 stands for “System and Organization Controls”, for which there are two (2) main types of SOC reports – SOC 1 reports and SOC 2 reports. While SOC 1 reports are primarily aimed at service organizations who provides essential services that could impact financial reporting for their clients, SOC 2 reports are geared towards the large and growing technology industry that is now taking shape.
As stated by the American Institute of Certified Public Accountants (AICPA), “System and Organization Controls (SOC) is a suite of service offerings CPAs may provide in connection with system-level controls of a service organization or entity-level controls of other organizations.”
The Importance of SOC 2 Reports
As for SOC 2 reports, they are intended to meet the needs of a broad range of users requiring comprehensive information and assurance about the controls at a service organization relevant to security, availability, and processing integrity of the systems the service organization uses to process users’ data and the confidentiality and privacy of the information processed by these systems.
As such, SOC 2 reports play a vital role in helping service organizations illustrate their internal controls to other entities requiring such information. Think of it this way in much more simpler terms. You have a business, and you’re relying on other businesses to perform critical functions that are essential to your success. So, don’t you want to know – don’t you deserve to know – that whatever services you’re outsourcing to these businesses, that they have the proper internal controls in place? Yes, you do, and it’s why SOC 2 audits have been experiencing massive growth in recent years, and will continue to do so.
Answer: There are literally tens of thousands of businesses – technically known as “Service Organizations” – in the world of regulatory compliance that actually have to perform an annual SOC 2 audit.
Service organizations are entities that provides essential services to another business, and because of that, these very service organizations are often asked to perform annual SOC 2 audits for purposes of examining and testing their internal controls.
What are internal controls? As defined in accounting and auditing, internal controls are a process for assuring an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.
Simply stated, internal controls are about the policies, procedures, and processes a service organization has in place for their daily operations. How do employees access information systems? What initiatives does management have in place for showcasing leadership and accountability? These are just a few of the countless number of internal controls for which service organizations should have in place, and annual SOC 2 reporting examines – and tests – these controls.
Think about it, if you’re a business outsourcing to another business, don’t you want to know about that organization’s internal controls? Don’t you want to know how their daily operations are run, what policies, procedures, and processes are in place? Sure, you do, and it’s why SOC 2 reports are being required for thousands of businesses throughout North America, and the world.
Southern California SSAE 18 SOC 1 assessments and audit reports are available from the Golden State compliance experts at NDNB. From San Diego to Sacramento – and beyond – NDNB has been offering high-quality, competitively priced regulatory compliance audits for years, so contact us today for all your SSAE 18 SOC 1 – and SOC 2 – audit needs.
With compliance mandates growing larger and larger each year, businesses are being forced to grapple with enormous costs and time-commitments for SSAE 18 SOC 1 audits, and its why businesses often turn to the California regulatory compliance leader at NDNB, providers of fixed-fee audit services for a wide range of regulatory mandates, such as SOC 1, SOC 2, PCI DSS, GDPR, HIPAA, and more.
Southern California SSAE 18 SOC 1 Type 1 & Type 2 Audits | Fixed Fees
What separates NDNB apart from the rest of the pack is our lock-step phased approach, one that illustrates efficiency and scalability when it comes to audits for California businesses. It means that from beginning to end, we’re all about efficiency, flexibility, competitive pricing, along with providing a superior assessment report for compliance and business development purposes. Nobody likes spending thousands of dollars and hundreds of hours on SSAE 18 SOC 1 assessments – we get it – and its why businesses turn to NDNB for today’s growing compliance mandates.
There’s quite the debate going on between SOC 1 vs. SOC 2 and which of the AICPA System and Organization Controls (SOC) options is more viable for a service organization. To help clarify, just remember that SSAE 18 SOC 1 are assessments conducted on entities that can impact their clients’ financials, while SOC 2 assessments are geared toward today’s technology driven businesses. That’s not to say there are exceptions, but these are the general rules that apply when choosing between SSAE 18 SOC 1 and SOC 2.
NDNB provides industry leading SOC 1 SSAE 18 and SOC 2 assessments for Colorado businesses located in Denver, Boulder, Fort Collins and other surrounding areas. With the incredible growth of regulatory compliance in today’s business world, companies are seeking highly competent, efficient, and trustworthy audit services, and its why businesses in Colorado turn to NDNB. From an initial SOC 1 SSAE 18 Readiness Assessment to remediation, along with performing an actual SOC 1 Type 1 and/or SOC 1 Type 2 assessment, NDNB has the expertise and knowledge for providing an efficient audit process from beginning to end.
SOC 2 for cloud computing is one of the most talked about topics in the world of regulatory compliance, and for two (2) obvious reasons: (1). Currently, there’s a massive migration underway by businesses that are moving towards cloud platforms (i.e., Amazon AWS & Microsoft Azure, and even Google GCP) (2). For many of these businesses – technically known as service organizations in the world of auditing – they’re having to perform annual SSAE 18 SOC 1 and/or SOC 2 audits.
