Many companies are part of an industry that provides services to customers, rather than goods. Are you one of those companies? If so, you might benefit from obtaining a SOC report.
A SOC report is obtained by having an independent accounting firm test your internal controls and issue a report on the effectiveness of the controls. The benefit to your company is that you can then distribute the SOC report to all of your customers and other auditors to rely. Your SOC report eliminates having multiple visits from multiple customers and auditors doing their own testing. Your customers and auditors may already be asking for a SOC report.
Industries Benefitting from SOC Reports:
- Claims processing – this industry performs processing of claims primarily for health insurance companies. Customers in this industry are concerned with privacy of personally identifiable information as well as the accuracy and timeliness of processing. A SOC report can test the controls in these specific areas.
- Inventory Management – this industry maintains and manages inventory for their customers. They receive goods, store and track goods, and ship goods. The main concern of their customers is to ensure that there are strong controls around tracking and auditing of inventory and that receipts and shipments are complete and accurate. These controls can all be tested in a SOC report.
- Data Centers – this industry hosts and maintains data and applications at their facilities for their customers. They are responsible for keeping the equipment running and available to their customers as well as providing necessary IT support. The customers are concerned with who has physical access to the facilities and access to their data as well as the availability of their data. Customers can gain comfort on these general IT controls in the SOC report.
- Title processing – these companies perform processing of titles for residential and commercial mortgage and real estate companies. Customers want to be sure that their information is kept confidential and that each transaction is processed accurately. SOC report testing focuses on completeness and accuracy of transactions, which is a customer’s primary concern.
If you think that your company could benefit from obtaining a SOC report, please contact Schneider Downs to learn more about our SOC examination service offerings. Our Internal Audit and Risk Advisory Services Team has experience in performing SOC reports in a variety of industries, including those discussed above.
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