SOC 1 Audit
SOC 1 audits, formally known as System and Organization Controls 1 audits, are crucial for businesses that provide financial services or handle financial data for other companies. These audits evaluate the internal controls that affect financial reporting.
What is a SOC 1 audit?
A SOC 1 audit, or System and Organization Control 1 audit, thoroughly evaluates a service organization's internal controls affecting client financial reporting. This rigorous assessment examines the design and operational effectiveness of controls relevant to user entities' financial statements.
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SOC 1 audits are vital for businesses that provide services impacting their clients' financial reporting processes. These often include payroll processors, claims administrators, data centers, and cloud service providers. The audit produces a detailed report, offering assurance to clients and their auditors about the service organization's control measures.
SOC 1 frameworks and scope
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SSAE 18 and ISAE 3402 standards
SOC 1 audits follow two primary frameworks:
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SSAE 18 (Statement on Standards for Attestation Engagements No. 18): This U.S. standard, issued by the American Institute of Certified Public Accountants (AICPA), guides how service auditors conduct SOC 1 engagements.
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ISAE 3402 (International Standard on Assurance Engagements 3402): This global standard, developed by the International Auditing and Assurance Standards Board (IAASB), ensures consistent reporting across international boundaries.
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These frameworks maintain a high level of quality and reliability in SOC 1 audits, regardless of location.
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Focus on Internal Control over Financial Reporting (ICFR)
The scope of a SOC 1 audit centers on Internal Control over Financial Reporting (ICFR). This focus sets SOC 1 apart from other SOC reports.
Key areas examined include:
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Transaction processing controls
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IT general controls
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Financial reporting processes
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The audit assesses how these controls influence the accuracy and reliability of financial data provided to clients.
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See also: SOC 1 vs. SOC 2 - key differences and similarities
Why choose us?
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Our team brings unparalleled expertise to SOC 1 audits. We have extensive experience conducting numerous SOC 1 audits across diverse industries. Our approach is tailored to fit your unique business model and control environment.
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We offer comprehensive support, from pre-audit readiness assessments to post-audit recommendations, guiding you through every step. Our auditors possess deep knowledge of SSAE 18 and ISAE 3402 standards. We understand the importance of meeting deadlines and work efficiently to deliver reports on schedule.
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Clear communication is our priority. We provide regular updates and explain complex concepts in understandable terms. By choosing our services, you're not just getting an audit – you're gaining a partner committed to enhancing your control measures and boosting your business credibility.
Stay in touch
ITGRC ADVISORY LTD.
590 Kingston Road, London,
United Kingdom, SW20 8DN
​company number: 12435469
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