OUR THOUGHTS ON:

Impact of Subservice Organizations to Service Organization Control (SOC) Reports

SSAE 18/SOC

By Heather Haemer

Customers of organizations that provide outsourced services of critical business functions and/or transaction processing often require the service provider (or service organization) to provide a Service Organization Control (SOC) report on an annual or recurring basis.  What if a service organization outsources a portion of its business to another third-party service provider?  In terms of a SOC report, the third-party service provider is referred to as a “subservice organization.”  There are two reporting options with respect to how the services provided by the subservice organization are presented within the SOC report:

Regardless of the method of reporting that is used, when a service organization outsources a portion of its business, the organization must describe the services that are outsourced and the procedures that the organization uses to monitor the services provided.

Schneider Downs has a dedicated team of professionals in Pittsburgh, PA and Columbus, OH who provide SOC services.  We invite you to learn more about our SOC services.

© 2014 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.

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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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