BKMSH Basics of SOC II
- 1. Service Organization Control Series Part Two Basics of SOC II
- 2. Whatis Service Organization Control? Service Organization Control practices relate to a world of privacy breaches and fraud, where Service Organization Control have come under the scrutiny of the government to ensure the confidentiality and integrity of user entities’ sensitive data. 2
- 3. Whatdoes Service Organization Controldo? Service Organization Control allows outsourcing tasks or an entire function, which can undeniably help a company to operate more efficiently and profitably. 3
- 4. Why do you need SOC? 4 • You will communicate to clients and prospects your compliance with standards and industry best practices. • You create a level playing field with your competitors. • Your clients expect it.
- 5. Importance of SOC reports 5 • Presents the client's significant non-financial data • Demonstrates Service Organization is serious on maintaining the security & confidentiality of client’s data • Shows whether or not the internal controls are working effectively • Provides further validity of the financial statement
- 6. Scopeof SOCIIreports • SOC II reports cover the broadest range of information and assurance about controls • Uses predefined gauges in Trust Service Principles, Criteria and Illustrations, and prerequisites and guidance in AT Section 101, Attest Engagements 6
- 7. Types of SOC II reports 7 • A SOC II Type I report covers appropriateness of the controls • A SOC II Type II report examines and verifies efficacy of the controls • SOC II Type II utilizes professional standards, AICPA publications in relation to SOC framework, Extent and subject matter, & created for Intended users
- 8. Elements of SOC II reports 8 • Description of the Service Organization’s system • Service auditor’s report that expresses auditor’s opinion • Auditor’s test of controls and its outcome • Efficacy of the controls
- 9. Benefits and drawbacks of SOC II reports 9 • SOC II reports will let their readers examine and evaluate the service provider more thoroughly • Users may have to gather or acquire extra reports from trusted subservience providers • Service providers may not be inclined to disclose the reports on detail
- 10. Goodfortuneiswhat happenswhen opportunitymeets withplanning. - ThomasAlvaEdison 10 BKM Sowan Horan, LLP 15301 Dallas Parkway, Suite 960 Dallas, Texas 75001 Phone: 214-545-3965 Fax: 214-545-3966 www.bkmsh.com For more information about Basics of SOC II, please visit: http://bit.ly/BKMSH-Basics-of-SOC-2