Is the organization ready for a SOC 2 examination? Listed below are five steps to help successfully prepare for just one:
Validate the nature of the request. Does your client base understand the various SOC reporting options and what they're asking of one's organization from a compliance reporting perspective? Can there be a connection to internal controls over financial reporting (ICFR) of the services that you provide to your clients, or are you currently looking at general controls of something which are strongly related security, availability processing integrity, confidentiality, and privacy? SOC 1 can oftentimes be misused by most people as a general mention of the third-party audits. There's misconception available; help prevent it.
Understand the trust service principles. Experience indicates that the best way to attain a successful solution is by considering the requirements of customers and other interested third parties how to get a SOC 2 report. First, communicating and determining the info the consumer organization will require, need, and expect should help determine the best trust service principles (TSP) to select. Also, service organizations must look at their control environment and identify which TSPs are applicable based on the criteria. Several times an organization or the interested third party will demand specific TSPs, however, after reviewing the criteria, the organization's business processes, and the control environment, the principal would not even be applicable in the service organization's environment. For instance, a cloud service provider probably will not need to target on processing integrity, but it is essential for a payroll provider.
Determine preparedness. Once you understand different TSPs, consider your alternatives and preparedness just before determining how to proceed. If the surroundings to be audited is relatively new and never been through an audit, it could be best to start with a readiness assessment and/or Type 1 examination, and then move to a Type 2 engagement. Be mindful of the review date and review period as they connect with Type 1 and Type 2, respectively.
Identify key person(s) within the organization. This person(s) will result in the general audit effort. Determine whether your organization gets the bandwidth necessary to supply the time and resources required of the engagement. But not mandatory, oftentimes it is beneficial to assign an internal point person with audit experience to the engagement.
Contract and start planning. It's necessary to do due diligence when selecting your service auditor. Talk with at the very least three different firms. Confirm that the firms have the correct licensing and credentials to work in the state(s) that the services are situated, have skilled and credentialed personnel, and certainly are a good fit overall along with your organization. Remember, minimal costly firm
How many SOC 2 engagements perhaps you have performed as a business? How many SOC 2 engagements have now been performed for other individuals in your industry? Just how much experience do your personnel have in performing SOC 2 engagements?
How do you provide pricing?
An adequately planned engagement by having an experienced audit firm may help your SOC 2 examination be successful. Good luck!
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