SOC 2 Audit

Organizations often outsource certain functions to service providers who can perform these tasks professionally and cost-effectively. Outsourcing arrangements can increase a company's revenue and reduce costs. However, outsourcing also introduces new risks stemming from the cooperation with these service providers. To manage these risks, companies need information about the design, operation, and effectiveness of the controls implemented by the service provider.

SOC 2 reports help companies by analyzing and evaluating the effectiveness of the service provider's controls. SOC 2 is a voluntary standard for service organizations, developed by the American Institute of CPAs (AICPA), which specifies how service providers should manage customer data. There are two types of SOC 2 audits: Type 1 and Type 2, and we can issue both types of reports.

SOC 2 covers the following domains:

• Security
• Availability
• Confidentiality
• Privacy
• Processing Integrity

Based on rigorous auditing practices, a SOC 2 Report from Crowe provides assurance that a service provider:

• For Type 1 and Type 2: Presents its services in accordance with the required description criteria.
• For Type 1 and Type 2: Designs controls that ensure service commitments and system requirements are met based on the applicable trust services criteria.
• For Type 2: Operates controls effectively throughout the audit period.

Additionally, we can issue SOC 3 Reports. A SOC 3 Report is a concise public version of the SOC 2 Type 2 Report. It is designed for users who need a general overview of the service organization's controls but do not require a detailed description of the system and testing procedures. Unlike SOC 1 and SOC 2 reports, which are restricted to specified parties, SOC 3 reports can be freely distributed to anyone. These reports can help service organizations demonstrate their compliance with various standards and regulations.