SOC 2 Audits – Fargo (ND)

SOC 2 Examinations

Fargo and North Dakota business owners need to protect sensitive data, especially regarding the financial and personal identification information (e.g. social security numbers) of customers and clients. Ensuring robust internal controls and cybersecurity policies and practices are in place to protect against a breach is essential. Increasingly, many clients and customers are asking their vendors for a Systems Organization Control (SOC 2) Audit Report as a condition for doing business with them or continuing these relationships in the case of contract renewals. A SOC 2 Report is an opinion on the effectiveness and design of an organization’s internal controls that meet the AICPA Trust Services Criteria. In essence, it is a statement verifying the effectiveness of an organization’s risk management efforts to protect the information of its customers and clients.

Fargo SOC 2 Audits

McKonly & Asbury provides SOC audits to companies in Fargo, North Dakota and beyond. Typically, we work with organizations that use or store sensitive financial and personal data that cybercriminals want. Our clients include data centers, loan servicing companies, insurance companies, medical claims processors, and payroll providers. Broadly, any 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 before determining the type of SOC report that applies to their needs. There are two types of SOC 2 audits:

• SOC 2 Type I – A SOC 2 Type I report is an opinion on management’s description of a service organization’s system and the suitability of their design of controls that meet the AICPA’s Trust Service Criteria for Security. It can also address Availability, Processing Integrity, Confidentiality, and/or Privacy, depending on your customers’ requirements. The report comprises the auditor’s opinion, management’s assertion on the presentation and design of the controls, a description of the service organization’s systems and controls, and a listing of the organization’s controls. The SOC 2 Type I audit report differs from the SOC Type II in that the former covers ONLY the suitability of the design and addresses ONLY at one specific point in time.
• SOC 2 Type II – A SOC 2 Type II report is an opinion on management’s description of a service organization’s system and the suitability of the design and operating effectiveness of controls that meet the AICPA’s Trust Service Criteria for Security. Similar to a SOC 2 Type I, this report can also address Availability, Processing Integrity, Confidentiality, and/or Privacy, depending on your customers’ requirements. A SOC 2 Type II audit report contains the same core components as a Type I, but Type II is expanded to include the procedures used by the auditor to test the stated controls and the results of such tests over a defined period rather than a single point in time.

Map of Fargo (ND)

About Fargo (ND)

The Fargo, North Dakota, business community represents a robust and evolving economic landscape characterized by a unique blend of traditional industries, innovative startups, and a robust entrepreneurial spirit. Fargo, the largest city in North Dakota, has historically been a center for agriculture, education, and manufacturing, serving as a vital economic hub in the region. In recent years, however, the city has witnessed a remarkable transformation, driven by diversification into technology, healthcare, and service sectors, reshaping its economic identity and positioning it for future growth.

At the heart of Fargo’s economy is its agricultural heritage, with the city and its surrounding areas continuing to play a significant role in the nation’s food production and agribusiness. This strong agricultural foundation has fostered a culture of innovation and entrepreneurship, leading to the development of advanced farming technologies and value-added agricultural products. Fargo’s business community has leveraged this heritage to create a diverse and resilient economic base.