SOC 1 Type 1 is a report that evaluates a service organisation’s internal controls relevant to user entities' financial reporting.
It assesses the design and implementation of these controls as of a specific date. This standard is particularly crucial for organisations that provide services affecting their clients’ financial statements, such as payroll processing, data hosting, or accounting services.
Key Components of SOC 1 Type 1
- Control Objectives: The report outlines the specific control objectives relevant to the services provided, focusing on their impact on the financial reporting of user entities.
- Control Description: A detailed description of the controls in place at the service organisation that are intended to achieve the stated control objectives.
- Management Assertions: The service organisation’s management provides assertions about the fairness of the presentation of the system description and the suitability of the design of the controls.
- Assessment Date: The SOC 1 Type 1 report is issued as of a specific date, capturing the effectiveness of controls at that point in time.
TotalCert Consulting’s Services for SOC 1 Type 1
Gap Assessment and Reporting
- Initial Assessment: Conduct a gap analysis to identify any deficiencies in current internal controls concerning SOC 1 Type 1 requirements.
- Comprehensive Reporting: Provide detailed reports with actionable recommendations for addressing identified gaps.
Control Documentation
- Control Framework Development: Assist in developing and documenting necessary internal controls relevant to financial reporting.
- Policies and Procedures: Help create robust policies and procedures that align with SOC 1 Type 1 requirements.
Implementation Support
- Control Implementation: Support the organisation in implementing the recommended internal controls effectively.
- Management Responsibility: Facilitate discussions with management to ensure leadership is engaged in the control implementation process.
Training and Awareness
- Employee Training Programs: Conduct training sessions for employees to understand their roles in maintaining internal controls and compliance.
- Awareness Campaigns: Promote a culture of accountability and compliance within the organisation.
Pre-Assessment for Audit Readiness
- Perform pre-assessments: Or mock audits to prepare the organisation for the actual SOC 1 Type 1 audit.
- Corrective Actions: Provide guidance on addressing any findings or non-conformities identified during the pre-assessment.
Coordination of SOC 1 Type 1 Audit
- Audit Facilitation: Coordinate with a qualified CPA registered under the AICPA to conduct the SOC 1 Type 1 audit, ensuring a smooth process.
- Communication Management: Act as a liaison between the organisation and the auditors to facilitate information sharing.
Post-Audit Support
- Review Findings: Assist in reviewing the audit findings and provide recommendations for corrective actions if necessary.
- Continuous Improvement: Support the organisation in establishing a continuous improvement plan for maintaining and enhancing internal controls.
Project Timeline
The timeline for obtaining a SOC 1 Type 1 report can vary based on the organisation’s readiness and the complexity of its control environment. Typically, organisations can expect the process to take approximately three to five months, depending on the extent of required changes and management engagement.
Why Choose TotalCert Consulting?
Expertise in SOC Reporting
Our team possesses extensive knowledge and experience in SOC reporting, ensuring compliance with relevant standards.
Tailored Solutions
We offer customised services that align with your organisation’s specific needs and objectives for SOC 1 Type 1 compliance.
Qualified Partnerships
We collaborate with qualified CPA registered under the AICPA to deliver comprehensive SOC 1 Type 1 audits that meet industry standards.
Comprehensive Support
From gap assessments to post-audit support, we provide end-to-end assistance throughout the SOC 1 Type 1 process.