Not All SOC Audits Are Created Equal: How to Select a Quality Auditor
Contributors
Ensuring your system and organization controls audits and reports are detailed, comprehensive and effective is an essential responsibility for service organizations. Your customers rely on you to be committed to strong internal controls, and a SOC audit and report completed by a trustworthy CPA firm is the best way to provide them with the peace of mind they need.
Five Considerations to Add to Your Selection Criteria
If your SOC audit is not completed by a reliable and established accounting and advisory firm, your clients or independent auditors could reject the report. Service organizations could risk losing business if a current or potential client feels the SOC report does not fully or accurately represent your systems and controls. Your independent auditor may also require you to spend additional time and money searching for a trustworthy firm to perform a new SOC audit and report that meets their standards. Let’s explore five of the top criteria you should be considering when selecting a SOC auditor.
1. American Institute of Certified Public Accountants (AICPA) and Public Company Accounting Oversight Board (PCOAB) Registration
Firms performing SOC audits and reports should be registered with the AICPA and the PCOAB. The AICPA sets the standards, regulations and ethical guidelines that accounting and advisory firms must follow. PCOAB registration requires even more stringent adherence to regulatory compliance and a higher commitment to audit quality standards. Firms that pass the oversight and inspections by these two bodies can provide more informative, accurate and credible SOC reports.
2. Certified Public Accountant (CPA), Certified Information Systems Auditor (CISA) and Certified Internal Auditor (CIA) Licensure
The professionals performing your SOC audit and report should also be individually registered. A CPA licensure requires auditors to undergo extensive education, pass the CPA exam and meet ongoing continuing professional education (CPE) requirements. While CISA and CIA certifications are optional for SOC auditors, these designations ensure that the people performing your SOC examinations have the highest level of expertise and the breadth of knowledge of financial, operational and information technology controls in this service area.
3. Peer Review and Monitoring
Your SOC firm should consistently undergo peer review to ensure its accounting and auditing practices remain in good standing with other professionals in the field. Firms whose practices are monitored by independent experts are held to the highest standards. Your firm should provide you with a copy of their latest peer review report upon request.
4. An Experienced and Well-Trained SOC Team
SOC audit teams should be experienced with many types of audits and reports to ensure you have the most efficient and comprehensive examination possible. Confirm that your audit firm is familiar with SOC 1, 2 and 3 reports, IT risk assessments and general controls reviews. This breadth and depth of knowledge will enhance the effectiveness of your evaluation.
5. Collaborative Technologies
Your SOC team should use the latest technology to enhance your SOC partnership. With advanced tools and technologies, like Fieldguide, you benefit from real-time visibility into task progress, streamlined communication and secure document management. These platforms ensure accuracy and efficiency in your audit and report.
Not All SOC Audits Are Created Equal
A quality SOC auditor will be committed to helping you achieve strong internal controls and security. They will employ proactive communication, practical approaches and extensive partner involvement to ensure effective SOC 1, 2 and 3 examinations for your organization. And their team members should have extensive experience in financial process controls and security best practices for a wide variety of industries. If you have questions about selecting an auditor for your SOC audit and report, the Moore Colson System and Organization Controls (SOC) Audit and Reporting Team is here to help. Don’t hesitate to contact us for more information.
