S E R V I C E E X E C E L L E N C E | T R U S T E D A D V I S O R
Phanindra & Associates in partnership with USA based CPA firm specializes in performing SOC audit services to IT Outsourcing providers and BPOs in India that are vendors to the US based enterprises. With a team of x Big 4 firm auditors, Phanindra & Associates is well qualified and experienced to conduct SOC audits for US and India based vendors, cost effectively and efficiently.
SOC Audits – General Overview
SOC Audit certification has become a competitive advantage as much as a compliance mandatory need for the vendors servicing large enterprises in USA especially in the financial services and health care industries.
SSAE 16 – SOC 1 Audit - Examination
SOC 1 reports are important components of user entities' evaluation of their internal controls over financial reporting for purposes of compliance with laws and regulations and for when user entity auditors plan and perform financial statement audits. SOC 1 audit encompasses a service auditor's report on a service organization's controls as it relates to an audit financial statements or specific control objectives relevant to the service organization. A Type I report determines design effectiveness of such controls in scope and use such controls to be utilized during the Type – II reports.
SOC 2 Audit - Examination
User entities which need to understand internal control at a service organization as it relates to security, availability, processing, integrity, confidentiality or privacy. SOC 2 audit report plays an important role in oversight of the organization, vendor management programs, internal corporate governance and risk management processes, and regulatory oversight.
International ISAE 3402 Assurance
The ISAE 3402 audit engagement is conducted as per the international standards guidance rules. The ISAE 3402 audit report provides the assurance that the service business is maintaining effective and efficient internal controls related to financial, information, or security reporting. ISAE 3402 is similar to a SOC 1 SSAE 16 audit as conducted for US based entities.
SOC Audit – Value Add to Organizations
Given the depth of details involved, and the independent nature of the audit, these reports provide greater assurance to clients and their audit teams
SSAE 16 reports (unqualified) are the best way for the Service organizations to demonstrate solid business, fiancé and IT practices with appropriate checks and balances are appropriately implanted and attested by Independent Auditors.
With increased risks pertaining to Outsourcing, now many of the large clients in the US are making a SSAE 16 Type II report as a mandatory requirement either for procuring a new IT / BPO vendor or to renew the existing contracts.
More than as a compliance obligation, now service organizations (IT / BPO Vendors) are utilizing organization’s successful status of SSAE 16, as competitive edge and showcasing such status as a distinctive advantage over other vendors.