SOC Audits and SSAE 16
(formerly SAS 70)
In today's world, companies are focusing on their core operations and on maximizing efficiency on an enterprise wide basis. This focus has resulted in more functions, and processes, being outsourced to third party vendors, who through efficiency of scale, are able to provide cost containment benefits. This increased level of outsourcing has highlighted the importance of Service Organization Controls (SOC) audits. SOC 1 (SSAE 16, formerly SAS 70) and SOC 2 audits provide valuable information to organizations concerning the control environment in place at third party service organizations. These SOC audits highlight the Business Process and Information Technology controls in place and also indicate the level of effectiveness of the controls. Like the SAS 70 Standard before it, SSAE 16 reports provide a valuable tool for companies to use to evaluate the controls in place at their service providers, to protect their sensitive data.
Our SOC Specialists are well versed in the important changes and additional responsibilities placed upon service organizations in the new SSAE 16 and SOC 2 standards. The extensive experience of our team, in this highly specialized area of auditing, provides valuable benefits to service organizations and can make all the difference.
The SOC Audit team at WithumSmith+Brown can put you in a position of strength. We understand that your time and employee resources are limited. We also understand that compliance is only sustainable when it fits realistically with the needs of the organization. Our efficient customized work programs are designed to fit your business model, so you can develop realistic and sustainable best-practice methodologies.
Named in numerous trade publications as one of the most innovative and influential firms in the technology area, we have the expertise and resources required to examine both IT and business process controls, that can help put you and your customers in a position of strength. We provide services which include pre-SOC audit assessments of your controls, as well as Type I and Type II SOC audits.
Digitech Successfully Completes SOC 1SM
Type II Audit
Digitech Computer, Inc. reported today that they successfully completed the Service Organization Controls (SOC) 1SM Type II Audit, which is based on the next generation of American Institute of CPAs (AICPA) standards for reporting on controls at service organizations in the United States.
The successful completion of the SOC 1SM audit solidifies Digitech’s position as a clear industry leader in medical transportation billing, having demonstrated that comprehensive and effective operational controls are in place to monitor and validate business processes related to claims processing, billing, collections, cash application, information technology, and physical and logical security systems.
SSAE 16 (Statements on Standards for Attestation Engagements No. 16) replaces the SAS 70 (Statement of Auditing Standards No. 70) and goes beyond it by requiring the auditor to obtain a written assertion from management regarding the design and operating effectiveness of the controls being reviewed. Under the new AICPA reporting standards, an audit that is conducted under SSAE 16 standards will result in a Service Organization Control (SOC) 1SM report.
“We are pleased to achieve this measure of confidence in our systems and controls,” stated Joyce Kerulo, Senior VP of Billing Services for Digitech Computer.
“Digitech’s unqualified SOC 1 opinion assures our clients and their auditors that best practices are employed throughout the EMS billing process.”
Digitech’s SOC 1SM audit was conducted by WithumSmith+Brown, PC, Certified Public Accountants and Consultants. Withum, a provider of quality service and innovative solutions for more than 35 years, is one of the largest regional public accounting and consulting firms along the mid-Atlantic corridor. With 14 offices and 450 employees, WS+B ranks among the top 33 CPA firms nationwide, and whose professional expertise in accounting, tax and consulting has repeatedly assisted businesses in realizing their full potential.
Tony Chapman, CPA.CITP, Engagement Partner and Practice Leader for SOC Engagements for WithumSmith+Brown, said, “The successful completion of its SOC 1SM audit is a significant accomplishment for Digitech. This audit report will provide the Company’s clients with an in-depth understanding of its internal controls relevant to them.”