Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

UNDERSTANDING SERVICE ORGANIZATION CONTROL REPORTS

811 views

Published on

This brochure defines “Service Organization Control Reports” and explains the benefits of receiving an SOC report.

Mayer Hoffman McCann P.C. is a national, independent CPA firm that has grown and fluorished to become a national alternative to the Big Four. While we have resources across the country in more than 35 offices, we maintain that our clients deserve peronalized, premier caliber service. Guided by our core values of competence, integrity, respect and value, our professionals and our firm, operate as your trusted advisor.
At MHM we are steadfast in our commitment to you and the public to deliver sound financial reporting and reliable assurance services. You have our commitment to responsive service and compliance with the profession’s highest technical and ethical standards.

For more information, visit http://www.mhm-pc.com

  • Be the first to comment

UNDERSTANDING SERVICE ORGANIZATION CONTROL REPORTS

  1. 1. SERVICE ORGANIZATION CONTROL REPORTS Mayer Hoffman McCann P.C. An Independent CPA Firm
  2. 2. MAYER HOFFMAN MCCANN P.C. - SERVICE ORGANIZATION CONTROL REPORTSToday’s news headlines continue to showcase stories of business fraud and technologybreaches, which have generated a renewed commitment to tighten controls and increasescrutiny of organizations across the country.W ith the increased scrutiny, the need Our dedicated professionals provide service for ensuring your clients information is organizations detailed examinations of the internal safeguarded and effectively managed is controls over their policies and procedureseven more essential now than ever before. As more for both operating and technology controls.companies turn to third parties for their IT processing By evaluating and testing control policies andneeds, management needs to understand how procedures, management can demonstratetheir service organization’s internal controls are that the organizations’ controls are placed infunctioning in order to effectively manage their risk. operation, suitably designed and are operating effectively. Additionally, this independent processWhat is an SOC Report? often results in the identification of opportunitiesA Service Organization Control (SOC) Report is an for improvements in many operational areas.internationally recognized auditing standard developedby the AICPA to provide a formal report on the design, The Benefitsimplementation and operating effectiveness of security An SOC Report may be requested by a client for theiractivities at a service organization. In addition to audit needs, however the results can benefit bothits benefits to the service and user organizations, it parties involved. And while it used to be common justalso provides the external auditors an independent for large companies to have such a review performed,opinion of the necessary information to understand more companies are opting to get one in an effort tothe flow of transactions, cocntrols stay competitive in the marketplace.that may affect the processing oftransactions and information aboutthe effectiveness of the controlstested. Until 2010, this process hadbeen known as a SAS 70 audit.
  3. 3. The key benefits of an SOC Report include: a proven track record of satisfied clients. We use a risk-driven methodology in our approach, • providing an independent assessment of the aligning audit efforts with the areas of greatest service organization’s control structure concern within your business. And, you’ll • assisting a client’s auditor in planning find that we offer our high quality services the audit of their financial statements, at fees that are very competitive with those reducing the possibility of incurring of the Big Four and other national firms. additional cost in order to send their auditors to perform required procedures Moreover, the skill of our dedicated team • providing a competitive advantage over and our involvement with attending regular other companies in the industry that training to keep abreast of changing legislation, haven’t received an SOC Report speaking on recent developements in the • building trust and confidence of a client and industry and providing thought leadership and using the report to reinforce customer contracts guidance has positioned MHM as a leader • assisting with Sarbanes-Oxley in the SOC (formerly SAS 70) arena. certification for a service organization • increasing audit efficiencies in financial Is Your Organization Ready? statement audits for a service organization • identifying additional opportunities for Now is as good a time as any to go through with improvements in many operational getting an SOC Report. Whether you’re being areas of a service organization asked for one by your clients or their auditors, or you’re ready to give your organization a competitive advantage, our professionalsTypes of SOC Reports are ready to speak with you. We can alsoThe AICPA has established three SOC reporting perform a readiness assessment to identifyoptions with the goal of better addressing the areas for improvement to ensure that yourneeds of the marketplace. There are two types of company is well positioned to undertake anSOC 1 reports which exclusively focus on controls SOC Report evaluation when the time is right.at a service organization, likely to be relevant toan audit of a user entity’s financial statements.SOC 2 and SOC 3 reports focus on controls atthe service organization that relate to operationsand compliance. These three reports representsignificant changes in service organizationreporting approaches. Your audit provider canhelp you determine which one is right for you.Our ExperienceMayer Hoffman McCann P.C. (MHM) has adedicated team of professionals who provide SOCReport services. In today’s regulatory environment,the ability to perform this assessment effectivelyand remediate control deficiencies before theycause problems, as well as provide business-friendly solutions, are all at a premium.Our professionals have years of experience and
  4. 4. About MHM Mayer Hoffman McCann P.C. is a national, independent CPA firm that has grown and fluorished to become a national alternative to the Big Four. While we have resources across the country in more than 35 offices, we maintain that our clients deserve peronalized, premier caliber service. Guided by our core values of competence, integrity, respect and value, our professionals and our firm, operate as your trusted advisor. At MHM we are steadfast in our commitment to you and the public to deliver sound financial reporting and reliable assurance services. You have our commitment to responsive service and compliance with the profession’s highest technical and ethical standards. Mayer Hoffman McCann P.C. provides a comprehensive range of audit and attest services including: • FINANCIAL STATEMENT AUDITS OF PUBLIC AND PRIVATE COMPANIES AND NONPROFIT ORGANIZATIONS • YELLOW BOOK AUDITS • SOC REPORTS OF SERVICE ORGANIZATIONS • EMPLOYEE BENEFIT PLAN AUDITS • SEC ADVISORY SERVICES • LITIGATION SUPPORT • REVIEWS • COMPILATIONS • OTHER ATTEST SERVICES© Copyright 20101 Mayer Hoffman McCann P.C. All rights reserved • Mayer our roots Hoffman McCann P.C. run deep ™ An Independent CPA Firm www.mhm-pc.com

×