Advantages of SOC Reporting
In today’s world, you would hardly find an organization that does not outsource at least one function or component of their control environment to a third-party service provider. From payroll processing to invoice creation and cloud storage to backup solutions, third party vendors have provided companies with cost-effective and efficient ways to reduce the need for internal resources for performing reoccurring or computerized tasks.
While this has helped organizations reduce headcount, stress, and certain costs, it does not eliminate the company’s responsibility to ensure their processes are functioning correctly, their data is secure, and their control environment is integrated. Since, these types of associations have become more common, the demand from clients (or “user entities”) and their external auditors for service organizations to provide assurance that their processes and controls are designed, and operating, effectively has also increased. Complying a SOC 2 audit gives your organization an edge as you can assure your customers that you are taking all necessary steps to keep their data safe and safeguard against damaging breaches.
Following are the key benefits of having a compliant SOC report:
Attracts your buyers
Organizations concerned with security are more likely to become customers if you can provide a SOC 2 report, which shows that you are following best practices for implementing and reporting on control systems.
Acts as Differentiator
Your competitors may claim to be secure, however they cannot prove that without an audit. Getting a SOC 2 report can differentiate your organization from other companies in the marketplace that have not made as significant an investment of time and capital.
As SOC audit helps you learn to be more secure and efficient. You can streamline your processes and controls based on your understanding of the risks that your customers face. This in-turn will help you improve your services.
While working with other people’s financial data / sensitive information, trust is the key thing you offer to your client. A SSAE 18 report performed by an independent auditor proves to clients that the systems and controls you have in place are secure and effective.
Save Time and Money
Audits can be time consuming and utilize valuable company resources. However, if you have a current report, it can be utilized by an external auditor and will help you save a lot of re-work. If you don’t a SOC report, you could face multiple user organizations’ auditors individually, repeating the process with each and every request
Identify and Remediate Deficiencies
Apart from having an internal audit function, a third-party auditor can bring in new perspective on control environment and help catch inefficiencies or areas for improvement within your service organization that will end up saving you time and money in the long run.
Make Public Companies your client
Publicly traded companies are required to use service providers that are SSAE 16 qualified. Having a SSAE 16/SOC audit will expand your market beyond privately held companies to include public corporations.
Establish relationship with your Auditor
By the end of your SSAE 18/SOC audit, your auditors will know your business inside and out. You’ll be able to take advantage of this valuable resource long after the audit is complete. Any time you have a question you can refer to this trusted, knowledgeable resource to help navigate even the toughest business decisions.