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Aug 6th, 2022
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How to aicpa soc 1 guide pdf

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SSAE 16 professionals clarify the confusion between sock 1 vs sock 2 and type 1 vs type 2 audits. Sock 1 is the same as an SSAE 16 audit, while Sock 2 and type 2 reports are different reporting standards, like apples and oranges. The differences include color, taste, and texture, just like the variations between sock 1 and sock 2 audits.

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9 Steps to Prepare for a Smooth SOC 1 Audit Map Your Clients Internal Controls. Review Policies and Procedures. Inform and Train Employees. Perform a Risk Assessment. Define the Scope of Your SOC Audit. Outline Regulatory Obligations. Analyze Vendor Management Practices.
What Should I Look for When Reviewing a SOC Report? For a SOC audit performed on your organization, specifically, you should review the auditors opinion, CUECs, points of non-compliance, as well as deviations and responses.
A SOC 1 (Service Organization Control 1) report gives your companys user entities some assurance that their financial information is being handled safely and securely.
What is a SOC 1 audit? A SOC 1 audit is an audit at a service organization related to internal control over financial reporting (ICFR). SOC 1 audits were developed by the AICPA and follow the Statement on Standards for Attestation Engagements No. 18 (SSAE 18).
The SOC 1 Type 1 report concentrates on the service organizations system, the suitability of the system controls for achieving control objectives and the description on a specified date. These reports are often restricted to user entities, auditors and managers, typically those who belong to the service organization.
The scope is different: SOC 1 reports focus on financial controls, while SOC 2 reports focus more broadly on availability, security, processing integrity, confidentiality and privacy. SOC 1 tests controls that meet the identified control objectives, where SOC 2 identifies and tests controls that meet the criteria.
A SOC 1 Audit is focused on internal controls related to financial reporting (ICFR). A SOC 2 Audit is focused on information and IT security identified by any of 5 Trust Services Categories: security, confidentiality, information privacy, processing integrity and availability.
SOC 1 is a report on service organization controls relevant to a user entitys internal control over financial reporting.
SOC 1 certification is required when an entitys services impact a user entitys financial reporting. For example, if a manufacturer uses a component that Company ABC has in its product, Company ABCs business impacts financial reporting.
9 Steps to Prepare for a Smooth SOC 1 Audit Map Your Clients Internal Controls. Review Policies and Procedures. Inform and Train Employees. Perform a Risk Assessment. Define the Scope of Your SOC Audit. Outline Regulatory Obligations. Analyze Vendor Management Practices.

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