SOC Reporting Made Simple

Many organizations today increase their scope and productivity by outsourcing tasks to service organizations. However, when user entities outsource functions to third parties, some risk is “outsourced,” too.

That’s where SOC Reports come in.

Statement on Standards for Attestation Engagements (SSAE) 16 is an auditing standard for service organizations. MegaplanIT's Service Organization Control (SOC) Reports make it easy to ensure that your business's interests are protected by your third-party partners.

Our wide range of SOC reporting options will help you understand the big picture, so you can be confident that your information will remain secure, confidential, and available throughout the life cycle of your business relationship.


Pre-assessments

Delegating operations, such as customer support and IT enterprising, to third-party service organizations can be an efficient and cost-effective way to meet your organizational needs, but it invites a level of risk.  It's ultimately your business's responsibility to ensure the security of your sensitive data, so it's essential to understand how your service organization protects your information.

MegaplanIT understands that SOC Reporting can be a complex and challenging endeavor. That’s why we provide a comprehensive Pre-Assessment that evaluates your readiness and streamlines the SOC Reporting process. Our Pre-Assessment sets clear expectations for your service organization's audit, including time and cost estimates, so we'll be able to narrow the scope to meet your goals and objectives.

Which SOC Report is Right For You?

1
SOC 1

Seeking a cost-effective method of preparing for a service audit.
Planning to perform an initial Type 2 service audit.
Your service organization currently identifies control vulnerabilities using an internal reporting system.
Your organization has not recently performed an audit (financial or regulatory) that included IT controls.

2
SOC 2

Requiring third party verification.
Your organization operates a system that is critical to your customers.
Your organization prefers a detailed audit report.
Your organization's system does not affect your customer's financial reports.
Your organization desires that the audit be performed based on the five Trust Services Principles.

3
SOC 3

Your organization's reputation relies on the ability to keep information secure, accurate, and private.
Your organization operates a system that is critical to your customers.
Your organization desires an independent review that allows you to display the SOC 3 seal on your website.
Your organization employs more than ten people and/or exceeds $2 million in annual revenue.

SOC 1 Reports Type 1 & Type 2

TYPE 1 REPORTS
Type 1 reports focus on the effectiveness of policies and procedures in place at a service organization at a specified point in time and (1), confirm that controls are actively in place, (2), measure the effectiveness of the controls, and (3), assess how fairly the service organization's management has presented the controls to you.


TYPE 2 REPORTS
Type 2 reports cover policies and procedures currently in operation and test their effectiveness over a period of time. These reports include everything from the Type 1 report (examination and confirmation of controls in place) plus an analysis of the controls’ operating effectiveness over a specified period of at least six consecutive months. Type 2 reports are favored by many user organizations for their thoroughness.

SOC 2 Reports

SOC 2 reports outline the controls in place at your service organization and analyze their

confidentiality
security
processing
integrity
availability of information

SOC 2 reports provide evidence for your customers and other stakeholders that effective controls are in place which meet worldwide security concerns. 

SOC 2 reports are intended for a wider range of audiences than SOC 1 reports, but are not available to the general public. Their availability is restricted to those who have a demonstrated need for the information contained therein, and these reports are often a component of regulatory oversight, vendor management programs, and internal corporate governance. 

SOC 2 engagements also include the option of Type 1 and Type 2 reports, as described above.

SOC 3 Reports

SOC 3 reports, also known as Trust Services Reports, are more general and are intended for a broader audience than the other reporting options. They’re designed for anyone interested in a CPA's opinion about the availability, security, and processing integrity of controls at a service organization. SOC 3 Reports are often used for marketing purposes, distributed online, or posted on a service organization's website to prove that they have controls in place to manage risks associated with outsourcing services. 

Contact a MegaplanIT specialist today
to schedule a Pre-Assessment and find out which of our SOC Reports is right for you.