SOC 1 Examinations – Baltimore (MD)
SOC 1 Audits – Baltimore (MD)
SOC 1 Examinations
Baltimore and Maryland business owners need to ensure sensitive data is protected, especially when it comes to financial and identification information (i.e. social security numbers) of customers. Ensuring there are robust internal controls and cybersecurity policies and practices in place to protect against a breach is essential. In fact, many customers may expect to see a Service Organization Control (SOC) Audit report before doing business with a service provider. This audit verifies that the tools, processes, and procedures have been tested and are effective. Some may desire a SOC 1 audit, while others will obtain more value from a SOC 2 audit or SOC 3 audit. Whatever the desired level of assurance, it’s important to work with an experienced provider to drive the process.
Baltimore SOC Audits
McKonly & Asbury provides SOC audits to companies in Baltimore and Maryland. Typically, we work with those that use or store sensitive financial and other data that cybercriminals may want. Some examples include data center companies, loan servicing companies, medical claims processors, and payroll companies. Broadly, any service organization that provides services to customers that directly impact the customer’s financial statements would be a candidate for such a report. Service organizations should evaluate their needs along with their customers’ reporting needs prior to determining the type of SOC report that is applicable to their needs. There are two types of SOC 1 audit, including:
- SOC 1 Type I – These reports are defined as a report on the fairness of the presentation of management’s description of a service organization’s system and the suitability of the design of controls to meet the related control objectives. SOC 1 Type I examinations focus on the service organization’s system narrative, as well as the design effectiveness of the controls within the system, and are focused on the system and controls in place at a specific point in time.
- SOC 1 Type II – These reports are defined as a report on the fairness of the presentation of management’s description of a service organization’s system and the suitability of the design and operating effectiveness of controls to achieve the related control objectives. SOC 1 Type II examinations differ from the Type I examination since the reports include an opinion on the operating effectiveness of the controls, in addition to the design effectiveness covered in Type I.
SOC 1 FAQs
SOC 1 audits evaluate a service organization’s internal controls over financial reporting (ICFR). These audits ensure that your systems are secure and capable of producing accurate financial reporting for the services which your customers use in their financial statements.
Any service organization that affects its clients’ financial reporting should consider a SOC 1 audit. This includes third-party service providers, payroll processors, insurance companies, and trust departments. These audits help build trust with clients and instill confidence in the financial information provided to them
A SOC 1 Type 1 audit evaluates the design of your internal controls at a specific point in time (as of a specific date), while a SOC 1 Type 2 audit reviews the operational effectiveness of these controls over a defined period (usually 6-12 months). Since a Type 1 report only looks at control design, the Type 2 report provides your customers more confidence in your systems and processes as it looks at design and operations of controls over an extended period of time.
SOC 1 audits provide documented proof that your financial controls meet the control objectives important to your clients. A SOC 1 report may be required as part of certain contractual requirements.
Preparing for a SOC 1 audit typically begins with a readiness assessment to identify control objectives and controls that will be of value to your company and your customers, identifying any control weaknesses. This proactive step ensures your organization is fully prepared for a successful audit, addressing control gaps early in the process to guarantee the effectiveness of your internal controls over financial reporting.
Contact Us
McKonly & Asbury provides SOC 1 Audit services remotely to businesses in Charlotte from our Pennsylvania office locations. Interested in learning more about the SOC 1 audit services offered to companies in Baltimore and Maryland? Complete the form below and we will follow up with you shortly.
About the Baltimore (MD) Business Community
Baltimore, Maryland, has a diverse and dynamic business community, underpinned by key industries such as healthcare, biotechnology, education, finance, and logistics. The city has long been a center for the healthcare and life sciences sectors, with major institutions like Johns Hopkins University and the University of Maryland providing not only world-class research and medical services but also driving innovation and job creation. The biotech industry in particular has flourished, positioning Baltimore as a growing hub for medical research and development, with numerous startups and established companies in fields like pharmaceuticals, medical devices, and health IT.
Finance is another important sector, with Baltimore serving as a regional financial center. Large financial institutions, including investment firms, banks, and insurance companies, are well-represented, contributing to the city’s economic strength. The city’s proximity to Washington, D.C. also bolsters its role in government contracting and defense, attracting businesses that support national security, information technology, and infrastructure projects.
National Reach
McKonly & Asbury also provides SOC 1 Examinations for businesses and organizations at the following locations: Baltimore (MD), Boise (ID), Boston (MA), Chicago (IL), Dallas (TX), Denver (CO), Indianapolis (IN), Las Vegas (NV), Los Angeles (CA), Memphis (TN), Miami (FL), New Orleans (LA), New York City (NY), Portland (OR), Richmond (VA), Salt Lake City (UT), San Francisco (CA), St. Louis (MO), Seattle (WA), and Tampa (FL).