OUR THOUGHTS ON:

Would Your Company Benefit from Obtaining a Service Organization Controls (SOC) Report?

SSAE 18/SOC

By Trudie Kozar

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.

© 2013 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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