Why is a SOC 1 Report so important?
A customer working with your service organization will routinely have their financial statements audited. A Statement on Standards for Attestations Engagements 16 (SSAE 16) Service Organization Control (SOC) 1 report performed by I.S. Partners LLC will give your customer’s auditor the assurance that your service organization’s controls are designed and operating effectively, and that these controls do not negatively impact your customer’s financial statements. A SOC 1 report focuses on both business process controls and information technology controls, and is restricted to use by your existing customers (not potential customers).
What types of SOC 1 reports are available?
I.S. Partners LLC provides two kinds of SSAE 16 audit reports: Type 1 and Type 2.
- A Type 1 report states an opinion that your organization’s internal control system is designed suitability to achieve the related control objectives on a specified date.
- A Type 2 report contains the same information as a Type 1 report, but with the added testing of the controls to prove their operating effectiveness over a period of time. A Type 2 report describes the testing that is performed and the results of those tests.
What benefits will my company receive with a SOC 1 report?
Respect and trust regarding implemented internal controls are vital to customers who receive services from your organization. The customer must have assurance that internal control audits affecting their financial reporting are timely and accurate in order to stay in compliance with company policies and government regulations. IS Partners, LLC can attest to your service organization’s internal controls, and will let your customers know that your internal controls are effective.
The I.S. Partners SSAE 16 Seal of Excellence
The I.S. Partners “seal of excellence” is granted to SOC 1 – Type I and Type II recipients with unqualified audit opinions. For Type I recipients, the seal indicates that controls are designed effectively. For Type II recipients, controls are designed and operating effectively. The seal is illustrated on the audit opinion letters and is made available for posting on the recipient’s website and/or marketing literature.