SOC 2 Audits – Texas

SOC 2 Examinations – Texas

Texas 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.

Texas SOC 2 Audits

McKonly & Asbury provides SOC audits to companies in  Texas 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 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 Texas

About Texas

Texas, the second-largest state in the United States by area and population, is renowned for its thriving and diverse business community. With a robust economy and a business-friendly environment, Texas offers various opportunities across various industries.

The energy sector is a cornerstone of Texas’s economy. The state is a leading oil and natural gas producer, with significant reserves and production capabilities. Texas cities like Houston are global energy hubs, home to numerous energy companies, including ExxonMobil and Chevron. This sector drives the state’s economic growth and plays a vital role in the global energy market.

Texas is also a major player in manufacturing, with industries ranging from aerospace and electronics to chemicals and machinery. The state’s central location, transportation infrastructure, and access to international markets make it an attractive destination for manufacturing companies. Automotive manufacturing, in particular, has seen significant growth in Texas.

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.