SOC 1 Readiness Assessments
Detailed gap analysis, control design evaluation, and remediation planning to ensure your control environment is prepared for audit.
SOC 1 Compliance (SSAE 18) Services
Organizations whose services impact customer financial reporting are often required to demonstrate strong internal controls through SOC 1 compliance and reporting. Withum provides SOC 1 readiness, attestation and ongoing compliance support to help organizations strengthen internal controls, support customer audit requirements and align with stakeholder expectations.
Whether preparing for a first-time SOC 1 examination or maintaining an established compliance program, Withum provides structured support designed to reduce audit friction and strengthen financial reporting controls.
SOC 1 Compliance Services
Withum provides end-to-end SOC 1 examination support tailored to your environment, including:
Understanding SOC 1 Audits
Download Your SOC 1 Audit Prep GuideA SOC 1SM compliance report is an internal control audit prepared exclusively for Service Organizations. It’s a required restricted-use report that can only be distributed to existing customers and their auditors; not prospects. If a service organization’s clients have their financial statements and controls audited, a SOC 1SM report gives those clients’ auditors assurance that proper controls are implemented, operational, and effective.
SOC 1 audits are required for organizations that provide some sort of outsourced services for customers and clients. These businesses provide services that will typically have a material financial impact on their customers’ financials if something goes wrong. Examples of these types of businesses include, but are not limited to:
- Software-As-A-Service (SaaS) companies (FinTech platforms, sales platforms)
- Processing companies (payroll processing, claims processing)
- Loan servicing companies
In most cases, an organization’s customers will reach out and request a SOC 1 report when their financial statement auditors require one. However, many organizations opt to proactively complete a SOC 1 audit in lieu of having to answer the multiple security questionnaires they receive from various clients, if allowed, or to gain a competitive advantage in the industry.
There are two main types of SOC 1 audits – the Type I and Type II reports. Each report covers three important areas:
- Mangement’s Assertion
- Mangement’s Description of the System
- The Service Organization’s Controls and the Auditor’s Test Results
However, there are some important differences between the two reports:
- The SOC 1 Type 1 Audit – A SOC 1SM Type 1 report is a point-in-time report that audits the controls on a specific date.
- The SOC 1 Type 2 Audit – A SOC 1SM Type 2 report audits the controls over a period of time, typically a full year. It also determines the effectiveness of the control activities from a financial auditing standpoint, over that same period. Accordingly, OC 1 Type II audit provides the greatest level of assurance and is typically the most sought-after.
SOC 1 Type 2 audits are not to be confused with SOC 2 audits, which is a different type of SOC compliance report altogether. The AICPA also released a fourth type of audit, the SOC for Cybersecurity report, in May 2018. Unlike SOC 1 and SOC 2 reports, the SOC for Cybersecurity audit can be performed by any type of organizations, and it provides an in-depth evaluation of a company’s cybersecurity risk management program.
Ensuring SOC 1 Compliance
Are you looking for a SOC 1 audit report? Before beginning your SOC 1 compliance journey, it’s important to understand the basics of the SSAE 18 and internal control reporting. Do you know what your SOC auditor will be looking for? Here are some preliminary questions to consider before speaking with an accredited SOC professional.
SOC 1 Compliance Checklist
- Does your organization have a defined organizational structure?
- Has your organization designated authorized employees to develop and implement policies and procedures?
- What is your organization’s background screening procedure?
- Do clients and employees understand their role in using your system or service?
- Has your organization performed a formal risk assessment and considered how you might impact your customers' financials?
- Does your organization perform regular vendor management assessments?
- Has your organization developed policies and procedures that address all operational and IT general controls?
- Do you have formalized procedures for onboarding new customers that are designed to ensure the completeness and accuracy of processing?
- Do you have operational controls in place throughout transaction processing, from receipt through reporting?
- Does your organization perform an annual policy and procedure review?
If you’re unsure of the answers to these questions or don’t think that your organization has controls in place, don’t worry. Before getting a SOC 1 report, you’ll need to engage with an advisor to address any compliance concerns and map out the policies and procedures to be evaluated by the audit.
Why Withum
Withum is an AICPA-licensed CPA firm authorized to perform SOC 1 examinations, bringing deep experience across complex control environments. We provide end-to-end SOC 1 support-from readiness assessments through attestation and ongoing compliance-delivering a structured approach that reduces audit friction and strengthens internal controls. With a business-focused perspective, we help organizations use SOC 1 programs not just to meet requirements, but to drive operational consistency, reduce risk and build stakeholder trust.
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