SOC 2 Audits – Michigan
SOC 2 Examinations – Michigan
Michigan business owners need to ensure sensitive data is protected, especially when it comes to the financial and personal identification information (e.g. social security numbers) of customers and clients. Ensuring there are robust internal controls and cybersecurity policies and practices 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, in the case of contract renewals, continuing these relationships. 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.
Michigan SOC 2 Audits
McKonly & Asbury provides SOC audits to companies in Michigan 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, payroll providers, and more. 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 prior to determining the type of SOC report that is applicable 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 the requirements of your customers. The report is made up of 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 the requirements of your customers. 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 Michigan
The Michigan business community is a diverse and vibrant ecosystem that plays a crucial role in the state’s economy. With a rich history of entrepreneurship and innovation, Michigan has established itself as a hub for various industries, ranging from automotive manufacturing to technology startups. This narrative provides an overview of the key aspects of the Michigan business community, highlighting its strengths, challenges, and contributions.
Michigan’s business landscape is often associated with the automotive industry, as it is home to the “Big Three” automakers: General Motors, Ford, and Stellantis (formerly Fiat Chrysler). These automotive giants have a significant presence in the state, with numerous manufacturing facilities, research centers, and corporate offices. The automotive sector has been the backbone of Michigan’s economy for decades, providing thousands of jobs and driving innovation in areas such as electric and autonomous vehicles.
In addition to automotive, Michigan has a thriving manufacturing sector that extends beyond automobiles. Aerospace, defense, and advanced manufacturing companies are flourishing, contributing to the state’s economic stability. Michigan’s skilled workforce, strong infrastructure, and access to raw materials make it an attractive destination for businesses looking to expand or establish operations.
McKonly & Asbury provides SOC 2 Audit services remotely to businesses in Michigan from our Pennsylvania office locations. Interested in learning more about the SOC 2 audit services offered to companies in Michigan. Complete the form below and we will follow up with you shortly.