SOC 1/2/3 Audit Reports

SOC for Cybersecurity is for any business that works with service organizations. Especially those specializing in cloud storage and/or SaaS services and must ensure that each service organization maintains a safe and secure cyber environment.

What is it?

Service Organization Control (SOC) reports based on a framework for examining service organization operational and security controls.

Who oversees it?

The American Institute of Certified Public Accountants.

Who does it apply to?

Data centers and service organizations offering co-location, remote application, and cloud computing services. In particular, companies who are subject to the SOX compliance may have a particular interest in SOC reports, as understanding the controls at the service providers they employ is a part of SOX compliance.

How does it impact IT professionals?

Most MSPs outsource data center requirements to established service organizations. The SOC reports allow you to compare vendors and choose an organization that meets the security needs of your company’s critical information.

Do your clients need a SOC audit?

Very few, if any, of your clients will need to provide SOC reports. SOC reports are designed to be used by users comparing data center and cloud services vendors for data security and control. These data centers must prove that they abide by the SSAE 16 standard for financial reporting and control.

What are the dangers of not being SOC 1/2/3 compliant?

Civil and criminal penalties will vary based on what data is compromised and what statues, laws, and regulations are violated by failure to adhere to the SSAE 16 standard. The SOC reports are not, in themselves, compliances, but rather reports from vendors that indicate their suitability for secure data storage and processing based on industry standards.

SOC Compliance Services at a Glance

In most cases, MSPs will not be attempting to provide SOC reports themselves. Instead, they may be requested to evaluate SOC reports from several different service organizations to assist clients in determining which data center or cloud computing solution best fits the client’s needs and budget.



Related Articles:

SOC Report - AICPA