SOC 1 Audits: SOC 1 audits are audits of internal controls of a service organization in accordance with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization. These reports are intended for use by the entities that use service organizations (user entities) and the CPAs that audit the user entities’ financial statements (user auditors). The control objectives that are deemed to be important to the user entities and audited by the SOC auditor are usually defined by the service organization. Because the users of these reports are interested in the financial controls of the service organization, most control objectives selected are related to control objectives that are relevant to financial processes. Use of these reports is restricted to the management of the service organization, user entities, and user auditors.
As more services are becoming outsourced to other companies, the reliance of service organizations’ controls has increased to ensure the processing integrity, fraud deterrence, and reporting accuracy of businesses are maintained. Obtaining these reports will put worrisome customers of service organizations at ease and increase synergy between business partnerships.
For more information on SOC 1 audits in Salt Lake City, Moab, Spanish Fork, and St. George, Utah, we welcome you to contact our offices nearest you today.