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SOC 2 Audits – Tennessee (TN)

SOC 2 Examinations – Tennessee

Tennessee 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, 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.

Tennessee SOC 2 Audits

McKonly & Asbury provides SOC audits to companies in Tennessee 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.

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About Tennessee

Tennessee’s business community is dynamic and diverse, embodied by the state’s rich history, vibrant culture, and entrepreneurial spirit. Nestled in the southeastern United States, Tennessee’s business environment reflects a unique blend of tradition and innovation, drawing strength from its legacy industries and embracing future opportunities.

At its core, Tennessee’s business community is characterized by a strong entrepreneurial ethos. From the bustling city of Nashville to the historic charm of Memphis and the technological advancements in Chattanooga, the state offers a thriving ecosystem for businesses of all sizes and industries.

Tennessee’s commitment to education and workforce development is a cornerstone of its business success. The state is home to renowned universities and colleges that produce a skilled and educated workforce, attracting companies seeking top-tier talent. This emphasis on education helps drive innovation and economic growth.

McKonly & Asbury also provides SOC 2 examinations to companies in Arkansas, Arizona, California, Colorado, Delaware, Florida, Georgia, Indiana, Iowa, Illinois,  Kentucky, Maryland, Michigan,  New Jersey, North Carolina, Ohio, Pennsylvania,  South Carolina, Tennessee, Texas,  Washington, West Virginia and Utah.