An ISAE 3402 | SOC 1 Audit Checklist

ISAE 3402 | SOC 1 is the standard for outsourcing. Most organisations outsource IT or other activities to service organisations. In this outsourcing, it is crucial that the service organisation providing ICT services is reliable.

Reliability can be divided into several aspects: risk management, information security, privacy, anti-fraud measures, and continuity. The ISAE 3402 | SOC 1 standard offers extensive opportunities to report on these aspects and have this report audited (certified) by an external accountant.

Since compiling SOC reports can be a complex process where you need to juggle multiple tasks, many companies find it handy to use an ISAE 3402 | SOC 1 compliance checklist to ensure all SOC requirements and ISAE 3402 | SOC 1 controls are covered:

1. Is your company’s organisational structure defined?
2. Have you delegated the task of developing policies and procedures to specific employees?
3. What are your background screening procedures and employee conduct standards?
4. Do employees and other stakeholders learn and understand how to use your systems?
5. Are there procedures to address changes in a timely and effective manner?
6. Have you conducted a formal risk assessment to identify, analyse, and mitigate potential threats to your system?
7. Does your organisation regularly evaluate vendor managers?
8. Do you annually evaluate all policies and procedures and update them as needed?
9. Have you implemented physical and logical access controls?

Taking the time to complete an ISAE 3402 | SOC 1 audit checklist can be very useful as you organise your evidence in preparation for working with a CPA on your audit.

Checklist SOC 2

If you are a service organization and your customers entrust you with their data, you may need to pass a SOC 2 audit to sell your products. Your customers might now demand an audit report from you, or industry regulations might require it. You may need to provide proof of SOC 2 compliance to demonstrate that the data entrusted to you is well secured.

Here is a SOC 2 compliance checklist before your next audit to protect your customers’ data and your company’s interests.

1. Define Your Objectives.

SOC 2 compliance can help organizations that process customer data for other companies strengthen their reputation, financial statements, and stability by documenting, evaluating, and improving their internal controls. SOC 2 reports can offer a competitive advantage by revealing ways to operate more efficiently and securely, and you can highlight those strengths when marketing and selling your services:

• Oversight of the organization
• Vendor management programs
• Internal corporate governance and risk management processes
• Regulatory oversight
• Determine what you will test and why.

2. Choose the Right Trust Services Principles to Test.

SOC 2 audits assess the internal controls at a service organization relevant to the following five trust service principles or criteria, as set out by the AICPA:

Security: Information and systems are protected against unauthorized access, unauthorized disclosure of information, and damage that could compromise the availability, integrity, confidentiality, and privacy of that information or those systems.

1. Availability: Information and systems are available for operation and use.
2. Processing Integrity: System processing is complete, valid, accurate, timely, and authorized.
3. Confidentiality: Information designated as confidential is protected.
4. Privacy: Personal information is collected, used, retained, disclosed, and disposed of appropriately.

3. Choose the Right Report.

There are two types of SOC 2 reports: SOC 2 Type 1 and SOC 2 Type 2. The type of report you need depends on your specific requirements and objectives.

A SOC 2 Type 1 report is a quick, efficient way to ensure your data is secure and communicate that to your customers. A SOC 2 Type 2 report can provide more assurance by examining your controls more thoroughly and over a longer period.

4. Assess Your Readiness.

Preparing for a SOC 2 audit can be overwhelming, especially if you are doing it for the first time. You have many controls to choose from, and you need to meet numerous documentation requirements.

Starting with a readiness assessment can enhance the effectiveness of your SOC 2 report by helping you identify gaps in the control framework. By establishing the policies and procedures you have in place before the audit begins, you can review all controls in advance. Then you can see what needs to be done to pass each test associated with the audit.

Passing a SOC 2 audit should be challenging, but it doesn’t have to be stressful. Reviewing this SOC 2 compliance checklist before you start can help you prove that your customers’ data is safe, allowing your business to continue doing what it does best.

Challenges and Opportunities of

ISAE 3000 | SOC 2

Challenges

Undergoing an ISAE 3000 | SOC 2 audit presents its challenges. However, the challenges vary for each company, but these are the most common.

Employee investment.

For many companies, implementing an ISAE 3000 | SOC 2 audit is challenging because it requires a significant investment of employee time. Often, the normal workflow is interrupted to undergo the audit for weeks. It means that it requires time and money from a company. The process frequently places tangible pressure on the organization as it responds to audit requests and adjusts current documentation and procedures. However, Risklane can assist with this, often saving time and costs for the company.

Financial investment.

ISAE 3000 | SOC 2 audits are not inexpensive. At the bottom end, the investment can be enormous. Other cost factors include additional services, such as third-party scanning and penetration testing, and background checks on employees. Some customer requests may need to be put on hold while the team focuses on the audit. Because Risklane possesses more knowledge and experience about the audit, this can be cost-effective.

Opportunities

However, the opportunities outweigh the challenges.

ISAE 3000 | SOC 2 reports are used by organizations as a marketing tool. New and existing customers know directly through ISAE 3000 | SOC 2 that they are dealing with a reliable party. Organizations that do not have such reporting may miss out on significant new opportunities.

1. Implementation will have a positive impact on the quality of risk management.
2. Customer confidence improves that risks are effectively managed.
3. IT queries from partners and customers can be answered more efficiently.
4. Opportunities arise to attract new customers and retain existing ones.