Question: What is a SOC 2 Type 1 Report.
Answer: A SOC 2 Type 1 Report is a report issued by a Certified Public Accounting (CPA) firm that reports on controls in operation relating to the following five (5) Trust Services Criteria (TSP) in accordance with the AICPA System and Organization Control (SOC) reporting framework:
1. Security. Information and systems are protected against unauthorized access, unauthorized disclosure of information, and damage to systems that could compromise the availability, integrity, confidentiality, and privacy of information or systems and affect the entity’s ability to meet its objectives.
2. Availability. Information and systems are available for operation and use to meet the entity’s objectives.
3. Processing integrity. System processing is complete, valid, accurate, timely, and authorized to meet the entity’s objectives.
4. Confidentiality. Information designated as confidential is protected to meet the entity’s objectives.
5. Privacy. Personal information is collected, used, retained, disclosed, and disposed to meet the entity’s objectives.
As for the TSP’s, they are essentially control criteria for use in attestation or consulting engagements to evaluate and report on controls over information and systems (a) across an entire entity; (b) at a subsidiary, division, or operating unit level; (c) within a function relevant to the entity's operational, reporting, or compliance objectives; or (d) for a particular type of information used by the entity.
Talk to NDNB About your SOC 2 Type 1 & Type 2 Reporting Needs
NDNB is North America’s leading provider of regulatory compliance assessments, offering fixed-fee auditing services for SOC 2 compliance reporting for service organizations all throughout the country. Thousands of companies are being required to undergo annual SOC 2 assessments, and NDNB offers competitively priced audits that include the following services:
SOC 2 Readiness Assessments – Brief, Cost-Effective and Essential
Assessing one’s internal control environment before an audit is a must, and it’s why NDNB offers an incredibly quick and efficient readiness process for helping unearth and assess internal control issues. Imagine going through an actual SOC 2 Type 1 and/or Type 2 audit, only to find serious holes and other problems with your control environment – not a good place to be – and it’s why a readiness assessment is so important. It’s about updating processes and procedures, correcting procedural issues, and so much more.
Benefits of a SOC 2 Scoping & Readiness Assessment
Specifically, NDNB’s SOC 2 readiness assessment for service organizations will help identify internal control issues relating to missing and incorrectly performing operational processes and procedures, gaps within existing documentation, audit scoping boundaries, expectations for audit deliverables, and much more. Keep in mind that you’ll be required to perform necessary remediation of your internal controls before moving forward with an actual SOC 2 audit, a process that can take some time, depending on the maturity of your overall control environment.
Helpful Tips for a Successful SOC 2 Audit
1. Begin with Putting Together an Asset Inventory: Can you confidently state that you know exactly what information systems you have in place, where they’re deployed, and their overall purpose and intent? If not, it’s because you probably don’t have a comprehensive asset inventory list in place, a document that essentially details your I.T. infrastructure relating to firewalls, routers, switches, servers, company laptops, and other devices.
Now’s the time to put such a list in place, as it’s greatly needed for the SOC 2 audit, but also a best practice you should be implementing. Remember, it’s very difficult and challenging to protect one’s infrastructure if you don’t fully know the location of all your assets.
2. Know that SOC 2 Remediation is Absolutely Normal: Having a completely fault-free, perfectly functioning internal control environment is not the norm – it can happen – but generally speaking, almost every service organization will require some type of remediation for SOC 2 compliance. As stated earlier, documentation is a large part of compliance – along with making actual system configuration changes – and NDNB can help with essential remediation for ensuring rapid SOC 2 compliance.
3. Start with a SOC 2 Type 1, then Migrate to a Type 2: Type 1 assessments are the perfect stepping stone towards SOC 2 Type 2 compliance, and NDNB offers fixed-fee reporting for both SOC 2 Type 1 and SOC 2 Type 2 assessments.
Contact NDNB today so we can begin your SOC 2 efforts with a comprehensive, fixed-fee SOC 2 scoping & readiness assessment. We’ll help you identify all necessary remediation activities, confirm audit scope boundaries, provide you with documentation requirements, and much more. We’ve been a leader when it comes to providing service organizations with proven, scalable, and cost-effective regulatory compliance services. Visit socreports.com to learn more.
Fixed Fees. Nationwide Services. That’s NDNB.