Do You Need a SOC Report?
Articles by: Richey May, Dec 07, 2023
As a service provider to the Alternative Investment industry, protecting sensitive information is crucial for your company, especially since the financial sector continues to be a frequent target for cybersecurity attacks. By working with an independent auditor to obtain SOC 1 & 2 Reports, your firm can demonstrate its commitment to security and strong internal controls to provide comfort to your clients and stakeholders that proper internal controls have been implemented and independently evaluated to safeguard data. SOC Reports can also allow you to gain a competitive advantage by allowing you to work with larger and public organizations and appeal to potential investors.
Streamline Third-Party Risk Assessments with SOC 2 Reports
Are you tired of filling out lengthy and complex cybersecurity questionnaires, where the questions are convoluted and tedious? SOC 2 Reports provide an independent attestation report that can be shared with potential or existing clients, eliminating the need for detailed questionnaires.
SOC 1 or SOC 2: Choosing the Right SOC Report
For companies that provide services to Alternative Investment firms, a SOC 1 report is typically required. These reports focus on internal controls related to financial reporting, helping to ensure the accuracy and security of financial information. If your firm heavily relies on technology platforms or services, considering a SOC 2 report in addition to SOC 1 can address broader security concerns. However, SOC 1 remains the primary focus for financial controls.
Effort and Resources Required for SOC 1 and/or 2 Examinations
The timeline for completing a SOC 1 and/or SOC 2 examination can vary depending on the size and scope. Generally, it can take up to 12 months. By partnering with audit firms like Richey May, who specialize in the Alternative Investment industry, you can expedite the process and ensure a smooth audit process and timely report delivery.
Reduce the Workload of SOC 2 Audits with Automation Tools
While SOC 2 examinations are beneficial, they can be time-consuming. Automation tools, like Drata partnered with Richey May, can help store, pull, and keep information up to date, significantly reducing the time and effort as you prepare for and complete your SOC 2 examination. These tools also provide user-friendly dashboards for auditors, further reducing the time and cost of audits.