The value of SOC reports in monitoring third-party risks

Expansion of business process and system outsourcing continues to raise the need for third-party assurance.  When outsourced processes and/or systems relate to internal controls over financial reporting, a SOC 1 report is a third-party assurance option that can provide transparency about the third-party’s control environment.  Alternatively, if security, availability, processing integrity, confidentiality, or privacy is a concern, a SOC 2 report can provide assurance over one or more of those areas.

Now more than ever, SOC reports issued by reputable public accounting firms are paramount to effectively monitor and mitigate the unique risks that arise from digital transformation.